Solana experienced a brief rally after confirmation that the very first Solana ETF with expansion options will be launched on 2 July 2025.
According to data from crypto.news, Solana (SOL) rose almost 6% on Monday to an intraday height of $ 158.30 before winning winnings and established at the time of around $ 152.60. Despite the retracement, token remains around 44% above its low to date, with a current market capitalization of more than $ 81.6 billion.
Sol’s Rally was powered by renewed investor hype around the upcoming launch of the stock market -related fund that will go live tomorrow. The product, branded as the Rex-Superprey Sol + strike ETF, will be the first in the US to offer rewards on the chains in addition to exposure to bargain price. It marks a remarkable deviation from previous crypto ETFs that have largely excluded the preparation of characteristics as a result of regulatory and structural limitations.
However, the early excitement quickly faded as investors began to temper their expectations about how successful the new Solana ETF could be.
An important reason for this skepticism is the relatively small size of Grayscale’s Solana Trust (GSOL), which has been in existence for more than 43 months, but only managed about $ 75 million in assets, launched a stark contrast with Grayscale’s Ethereum Trust (ETHE) who had only launched $ 10 billion in Assiva in July 2024.
Traders seem to be increasingly insecure, because derivative data also indicate the weakening of the momentum for the sixth largest crypto-asset per market capitalization.
Solana’s Eternal Futures market on Hyperliquid reveals a careful position among traders. While long positions outweigh the volume, the win is with the bears; That is, Shorts have currently risen by more than $ 6.71 million, while Long’s collective is falling more than $ 707,000.
This inequality suggests that many lungs that were purchased during the ETF hype and now are under water, which strengthens cautious prospects in the short term.
Furthermore, the market capitalization of stablecoins on the Solana network has fallen from $ 13 billion in April to around $ 10.5 billion from the moment of press, which indicates a remarkable decrease in the liquidity of the chain and reduced demand for transactional activities within the ecosystem.
Moreover, despite the recent hype on Solana Memecoins, the turnover of the network has fallen by more than 90% since January.
All these factors can probably continue to weigh on the performance of Solana despite the ETF news.
Solana Price Analysis
On the 1-day/USDT graph, Solana (SOL) retreats to the falling trendline that it broke earlier, the same level that caused today’s rally. If it falls under this line, this can indicate a trend conversion and reduce the bearish momentum.
Price promotion has also slipped under the 50-day simple advancing average, a generally observed dynamic support level. This breakdown indicates that the power of the short term fades and contributes to the Bearish technical prospects.
The relative strength index, which initially rose to 55 after the ETF news was broken, has fallen back to 51 at the time of writing, indicating that the first purchasing pressure has been blurred.
Given these technical signals, SOL seems ready to re -test support at $ 143.10, which matches the 23.6% Fibonacci Retracement level. A decisive break below this level could open the path to deeper disadvantage, with the next important support resting at $ 126.48, its local layer last month.
A bearish overhang for SOL investors is that more than $ 585 million in SOL will be uninhibited in the coming two months, which may increase the sales pressure and further weigh on price performance.
Nevertheless, in a market where perception often weighs heavier than the basic principles, a strong day-one flows into Rex-Esprey Sol + bets ETF can overwrite the technical weakness and stimulate renewed accumulation.
Publication: This article does not represent investment advice. The content and materials on this page are only for educational purposes.
