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Key Insights:
- Solana’s $130 support is at risk from FTX token unlock.
- ETF listings offer hope but lack SEC approval momentum.
- Technicals signal potential drop to $65 if $130 fails.
Solana Price is scrambling to stay above $130 after a brutal sell-off slashed nearly 20% off its value this week. The cryptocurrency tumbled from a high of $172 to $134 in days, leaving traders on edge. As of now, SOL is clinging to around $140, but the storm isn’t over yet.
One of the biggest concerns revolves around the FTX estate’s impending token unlock. With many SOL tokens set to be released into the market, investors fear an oversupply that could drag prices lower.
This selling pressure coincides with extreme volatility across the broader crypto market. It has seen traders liquidating risky assets in response to macroeconomic uncertainty.
Data from crypto analyst Ali showed that open interest in Solana has dropped by 44% over the past month.
This decline, from an ATH of $6.39 Billion to just $3.57 Billion, suggested that traders are closing positions. It also indicated that they are moving away from SOL, possibly bracing for further downside.
Can ETF Listings Reverse Bearish Trend for Solana Price?
Amid the gloom, Solana price caught a small break when the Depository Trust & Clearing Corporation (DTCC) listed Solana futures ETFs. The debut of the Volatility Shares 2x Solana ETF (SOLT) and Volatility Shares Solana ETF (SOLZ) hinted at new opportunities.
This gave investors a chance to jump into SOL’s futures market. For a moment, it sparked optimism—a 2% price bump followed the news.
The ETF listings haven’t translated into a game-changer, partly because they don’t yet have the U.S. SEC stamp of approval. Big institutional players might stay on the sidelines without that regulatory green light.
While the ETF news is a faint silver lining, it’s not enough to counter Solana’s heavy downward pressure. Despite a slight 2% recovery following the ETF news, SOL price has struggled to sustain momentum.
Analysts remain skeptical about whether the listing alone can offset the bearish market forces currently weighing on SOL.
Solana Price $130 Support Holds—But Is a Breakdown to $100 Next?
Solana price is hovering near the critical $130 support level, a zone that has historically acted as a strong floor. However, multiple bearish signals suggest that this support could be on the verge of breaking.
The 50-day and 200-day exponential moving averages (EMAs) are on track to form a death cross. It is a pattern historically linked to extended bearish trends. If this crossover materializes, SOL price could face an accelerated decline. The next potential price target is as low as $100 or even $65.
Meanwhile, the Relative Strength Index (RSI) has sunk below 30, marking Solana as deeply oversold. In the past, such low RSI readings have sparked short-lived bounces. However, this time, traders aren’t holding their breath for a miracle recovery.
If buyers muster enough strength to defend $130, we might see a bounce back to $150 or even $160. Meanwhile, the fall could be swift and steep if that level cracks. $110 is the next stop, with $65 as a real possibility if things spiral further.
Solana price was at a tipping point between the FTX unlock threat, cratering open interest, and shaky technicals. Traders are watching closely to see if bulls can stage a comeback—or if the bears will keep calling the shots.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
