Solana price has fallen 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 decline looming?
Summary
- The Solana price has fallen 15% in the past week.
- The token is testing the USD 190 support, a break that could lead to more losses in the near term.
- Investors are excited about the possible approval of a spot Solana ETF.
According to data from crypto.news, Solana (SOL) was trading at $193, down 5.3% in the last 24 hours and 15.2% in the last 7 days.
Solana’s price took a hit as investor caution increased while risk sentiment gripped the market after a broader downturn caused by macroeconomic concerns, including a new wave of U.S. tariffs on Chinese imports.
At the time of writing, market sentiment appears to have improved, shifting from extreme fear to sheer fear, following the Fed Chairman’s recent dovish comments hinting 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-see mode, looking for signs of progress in the upcoming US-China discussions ahead of the looming November 1 tariff deadline.
A positive development could be key in reigniting bullish momentum in the crypto market, including Solana, as it enters the fourth quarter, 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 served as a bottom for the token since late August.
However, technical indicators seem to favor a bearish setup, with the 20-day moving average moving below the 50-day, a classic signal of a bearish reversal, which in Solana’s case could lead to further short-term losses.
If SOL fails to hold above $190, it could slide further towards $170, a level that marked last week’s low.
On the other hand, a clean break above $211 would flip the script and likely negate the bearish outlook.
Strong network performance and ETF hype supporting a bullish narrative
The Solana network has held up even as the broader market slows. The past 24 hours have been impressive $6.16 billion in DeFi trading volume, surpassing competitors like Ethereum and BNB Chain. This sharp increase confirms that activity on the network remains vibrant, with users continuing to engage despite general market hesitancy.
Investors are also excited about the potential launch of the first spot ETF for Solana.
Just a few hours ago, asset manager 21Shares submitted a Form 8-A with the U.S. Securities and Exchange Commission, signaling the final regulatory green light needed for the 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.
So once the dust settles and the broader market regains its footing, Solana can find the breathing room it needs to regain upward momentum as it enters the latter part of the year.
Disclosure: This article does not represent investment advice. The content and materials on this page are for educational purposes only.
