Solana Struggles: Price Down Almost 15% in a Week – Is It Time to Buy?
Solana (SOL) has experienced a 15% decline in the past week, currently trading at $193.62, as the broader crypto market is faced with a bearish sentiment. The Fear and Greed Index is at 35 (“Fear”), indicating investor uncertainty, while the crypto market cap remains at $3.12 trillion, with a daily trading volume of $125.13 billion.
Major cryptocurrencies are also facing difficulties, with Bitcoin (BTC) dropping to $96,048 (-1.92%) and Ethereum (ETH) falling to $2,605 (-5.61%). XRP has also declined to $2.40 (-0.72%). With the Altcoin Season Index at 29/100, Bitcoin’s dominance remains strong, limiting the potential for altcoin recovery.
Solana ETF Filing Gains SEC Recognition
In a significant regulatory development, the U.S. Securities and Exchange Commission (SEC) has acknowledged the first-ever Solana ETF filing, marking an important milestone for the cryptocurrency. The approval of NYSE’s 19b-4 filings enables firms like Grayscale, Bitwise, and VanEck to proceed with Solana-based ETF applications.
Bloomberg ETF analyst James Seyffart noted that this acknowledgment suggests a change in sentiment at the SEC, which had previously instructed issuers to withdraw Solana-related applications under Gary Gensler’s leadership.
With the expectation of new SEC leadership, analysts predict a final decision on Solana ETFs by October 11. If approved, this could drive institutional adoption of SOL and provide fresh momentum for its price recovery.
Solana Faces Resistance at $203 Amid Bearish Pressure
Despite regulatory optimism, Solana (SOL) remains in a downtrend, struggling to surpass $203, a critical resistance level that aligns with the descending trendline. The 50-day EMA at $206.68 continues to limit upward movements, reinforcing the bearish outlook.
A descending triangle formation indicates potential downside risk, particularly if SOL fails to hold its double-bottom support at $187. A break below this level could accelerate declines to $176 and $162, both of which have historically been strong support zones.
To change the sentiment, SOL must break and maintain above $203, which could open the door for a rally towards $218 and $231. However, with weak momentum and prevailing market fear, the bearish scenario remains dominant unless SOL reclaims these levels.
Key Insights:
– Solana is still below the $203 resistance, maintaining a bearish structure.
– A breakdown below $187 could trigger a more significant decline towards $176 and $162.
– The SEC’s acknowledgment of Solana ETF filings is a positive long-term catalyst.
From Solana to Solaxy: A Game-Changer in Layer 2 Scaling
While Solana faces immediate technical challenges, there is strong innovation within its ecosystem. One of the most exciting developments is Solaxy ($SOLX) – Solana’s first Layer 2 scaling solution aimed at addressing network congestion and reducing transaction fees.
Solaxy ($SOLX) has already raised over $18.73 million in its presale and has attracted over 65,000 followers on X. As Solana users seek improved scalability and lower costs, Solaxy aims to provide faster transactions and enhanced interoperability with Ethereum and other major blockchains.
With staking rewards reaching 216% annually and over 5.31 billion $SOLX tokens staked, investors are positioning themselves for long-term gains. As the presale approaches its final phase, $SOLX is currently priced at $0.001628, with the next price increase just around the corner.
If you are considering entering Solana’s growing ecosystem early, now is the time to act before the next price surge.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.