Solana price has shed 15% over the past week and is now teetering near a crucial support level. Will the bulls step in to hold the line, or is a deeper drop still on the cards?
Summary
- Solana price is down 15% over the past week.
- The token is testing the $190 support, a break below which could lead to more losses over the short term.
- Investors are hyped over the potential approval of a spot Solana ETF.
According to data from crypto.news, Solana (SOL) was trading at $193, down 5.3% over the past 24 hours and 15.2% over the last 7 days.
Solana’s price took a hit as investor caution deepened, with risk-off sentiment gripping the market following a broader downturn triggered by macroeconomic concerns, including a fresh wave of U.S. tariffs on Chinese imports.
As of press time, market sentiment seems to have improved, shifting from extreme fear to just fear following the Fed chair’s recent dovish remarks, which hinted at the possibility of two additional rate cuts this year.
While rate cuts are bullish for cryptocurrencies, traders remain hesitant as they remain in wait-and-watch mode, looking for signs of progress in the upcoming U.S.–China discussions ahead of the looming Nov. 1 tariff deadline.
Positive development could prove crucial in reigniting bullish momentum across the crypto market, including Solana’s, as it heads deeper into Q4, which has historically been the most bullish quarter for crypto assets.
On the daily chart, Solana is once again testing the $190 support zone, a level that has repeatedly acted as a floor for the token since late August.
However, technical indicators appear to favor a bearish setup, with the 20-day moving average crossing below the 50-day, a classic signal of a bearish reversal, which in Solana’s case could lead to further losses in the short term.
If SOL fails to hold above $190, it could slide further toward $170, a level that marked last week’s low.
On the flip side, a clean breakout above $211 would flip the script and likely invalidate the bearish outlook.
Strong network performance and ETF hype to support bullish narrative
The Solana network has held its ground even as the broader market slows down. In the past 24 hours, it logged an impressive $6.16 billion in DeFi trading volume, outpacing competitors like Ethereum and BNB Chain. This sharp uptick confirms that activity on the network remains vibrant, with users continuing to engage despite the overall market hesitation.
Investors are also buzzing with excitement over the potential launch of the first spot ETF for Solana.
Just hours ago, asset manager 21Shares filed a Form 8-A with the US Securities and Exchange Commission, signaling the final regulatory green light needed for its Solana exchange-traded fund to go live. Once approved, it could pave the way for a wave of fresh capital from traditional investors, a shift that could fuel long-term upside for the token.
As such, once the dust settles and the broader market regains its footing, Solana may find the breathing room it needs to regain upward momentum as it heads into the final stretch of the year.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
