On April 17, the price of Solana\u2019s SOL (SOL<\/a>) crept lower\u00a0in the wake of similar price moves across the top-ranking cryptocurrencies, including Bitcoin (BTC<\/a>) and Ether (ETH<\/a>).<\/p>\n SOL\u2019s price dropped by over 4% to go under $24.50 despite rising to $26 \u2014 a two-month high \u2014 earlier in the day. <\/p>\n In comparison, BTC\u2019s and ETH\u2019s prices dropped 3.5% and 3%, respectively, hinting at a bearish start to the week<\/a>.<\/p>\n The SOL\/USD selloff on April 17 started after it entered its 2023 resistance range.<\/p>\n Notably, the $25\u2013$27 price area has capped SOL\u2019s upside attempts since January 2023. Testing it as resistance has preceded 25%\u201340% corrections on multiple occasions this year, as illustrated below.<\/p>\n The possibility of undergoing a sharp bearish reversal in April has now increased as SOL\u2019s price returns into the range and its daily relative strength index (RSI) hangs around the overbought threshold of 70.<\/p>\n In this bearish scenario, the immediate downside target appears to be around $20, about 20% lower than the current prices.\u00a0<\/p>\n Conversely, a decisive breakout above the $25\u2013$27 price range could have SOL price climb toward $30, which served as support in August\u2013October 2022.<\/p>\n Such a breakout could extend until $35 over the next few months, a level that coincides with SOL\u2019s 50-week exponential moving average (the red wave in the chart below).<\/p>\n On April 17, U.S.-based Grayscale Investments announced that its Grayscale Solana Trust had begun trading on OTC Markets under the symbol GSOL. <\/p>\n Related:\u00a0Solana overcomes FTX fiasco \u2014 SOL price gains 100% in Q1<\/a><\/em><\/strong><\/p>\n To recap, Grayscale Solana Trust is a security that derives its value from SOL\u2019s spot price. In doing so, the trust enables investors to gain exposure in the Solana market while\u00a0avoiding the challenges of buying, storing and safekeeping SOL directly.<\/p>\n Interestingly, SOL\u2019s price dropped by up to 4.4% after the announcement, suggesting\u00a0traders likely \u201csold the news\u201d<\/a>\u00a0of an institutional Solana investment product going public.\u00a0<\/p>\n One reason for the bearish debut for\u00a0GSOL is the current state of Grayscale trusts on the whole. Notably, they act\u00a0like closed-end funds, meaning Grayscale cannot issue new shares or remove shares from the open market to adjust to capital inflow or outflow. <\/p>\n As a result, the share price of the Solana trust can deviate from the net asset value. This could spook investors in a bear market when their GSOL starts trading at a discount versus the value of Grayscale\u2019s SOL reserves, similar to the Grayscale Bitcoin Trust<\/a>. <\/p>\n As of April 17, Grayscale Solana Trust\u2019s holdings per share were up around 148% year-to-date, stemming from identical gains in SOL\/USD.\u00a0<\/p>\n This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<\/div>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2023-04\/3c8e3058-bcf2-48dd-b1ea-89cf30465363.png\")
SOL price in a technical correction<\/h2>\n
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Grayscale Solana Trust goes public<\/h2>\n
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