SOL Price Plunge: Solana ETF Gain Vanishes, Chart Warns of 20% Drop
The highly anticipated news surrounding a Solana (SOL) exchange-traded fund (ETF) briefly sent the SOL price climbing, but the excitement was short-lived. Within just 24 hours, those gains completely vanished, leaving investors wondering what’s next. Our latest crypto market analysis dives into the technical indicators suggesting more pain might be ahead for Solana holders.
Did the Solana ETF News Deliver? Analyzing the Initial Rally
Earlier this week, Solana saw a quick 5% jump, hitting $160 following news about its first ETF going live. This sparked hope among enthusiasts, but the momentum quickly faded. The fact that the price retraced all those gains so rapidly highlights underlying technical weaknesses that have persisted across different time frames.
On lower time frames, SOL price has struggled to hold above key moving averages (50-day and 200-day EMAs) for over a month. Despite a few attempts to break higher, like the move above $148 last week, these haven’t translated into sustainable uptrends. The $148 level is now acting as resistance, and a confirmed drop below $137 would signal a lower low, dampening hopes for a near-term recovery.
SOL Chart Analysis: What Are the Key Levels to Watch?
Looking at the higher time frame, the overall trend for Solana remains bearish. Since failing to break above the $180 resistance in May, SOL has been trading within a clear descending channel. While these patterns can sometimes lead to bullish reversals, Solana has shown sensitivity to broader market weakness, particularly Bitcoin’s sideways movement near its highs.
Our SOL chart analysis points to a critical support zone around $144.5 to $147.7. Data on the UTXO realized price distribution shows a significant concentration of supply (over 14%) was acquired in this range. Holding above $144 is absolutely critical. Why? Because a breakdown below this level indicates weak buying pressure and increases the probability of a significant cryptocurrency price drop.
Potential Cryptocurrency Price Drop: How Far Could SOL Fall?
If Solana fails to defend the $144 support, the path downwards appears less protected. The UTXO data shows thinner support below this level:
- Around $124: Only 1.58% of supply
- Between $95-$100: Approximately 3% of supply
These levels offer limited buffer. A break below $144 could realistically trigger a decline towards $124, or even a retest of the $95-$100 range, which represents a potential 20%+ drop from current levels. This lower range could, however, present a more attractive long-term entry point for some investors.
On the upside, resistance sits near $157, where 5.55% of the supply is concentrated. For SOL to regain bullish momentum, it needs a strong move back above $160 and a successful retest of the $145–$137 demand zone to confirm a potential reversal.
Conclusion: Navigating Solana’s Current Price Uncertainty
The failure of the Solana ETF news to provide sustained upward momentum underscores the current bearish pressure on SOL. The critical $144 support level is the immediate focus. A hold here is essential to prevent a deeper correction. However, if this key level breaks, investors should be prepared for a potential move towards $124 or even the $95-$100 range. A decisive break above $160 is needed to shift sentiment and indicate a potential bullish reversal.
Note: This article provides market analysis and does not constitute investment advice. Always conduct your own research.
