Solana failed to hold above $90 and extended its decline. The price of SOL is now consolidating below $85 and may struggle to begin a recovery. SOL started a fresh drop below $88 and $85 against the US Dollar and is currently trading below $85 and the 100-hourly simple moving average. A bearish trend line is forming with resistance at $85.50 on the hourly chart of SOL/USD. A recovery could begin if bulls defend the $82 or $80 levels.
Solana’s price dipped below $85 after failing to stay stable above $90, following a similar pattern to Bitcoin and Ethereum. SOL fell below $88 and $86, with bears pushing it toward $82. A low was formed at $82.92, and the price is now consolidating below the 23.6% Fibonacci retracement level of the drop from the $90.75 high to the $82.92 low.
On the upside, immediate resistance is near $85, along with the bearish trend line at $85.50. The next major resistance is near $86.80, which is the 50% Fibonacci retracement level of the recent decline. The main resistance sits at $88. A clear close above $88 could pave the way for a steady increase toward $90, with further gains possibly targeting $92.
If SOL fails to climb above the $86.80 resistance, it could continue to decline. Initial support is near $82.80, followed by major support at $82. A break below $82 might push the price toward the $80 support zone. A close below $80 could lead to a decline toward $76 in the near term.
Technical Indicators
– Hourly MACD: Gaining momentum in the bearish zone.
– Hourly RSI: Below the 50 level.
– Major Support Levels: $82 and $80.
– Major Resistance Levels: $86.80 and $88.00.
Frequently Asked Questions
FAQs Solana ETF Rejection Potential Price Impact
BeginnerLevel Questions
1 What does it mean that a Solana ETF was rejected again
It means a regulatory body like the US Securities and Exchange Commission has denied an application for an ExchangeTraded Fund that would track the price of Solana This makes it harder for traditional investors to buy SOL through standard stock markets
2 Why is an ETF rejection a big deal for Solanas price
ETF approvals are seen as major signals of legitimacy and can unlock massive new investment from institutions A rejection suggests regulators still view the asset as risky or unregulated which can dampen investor enthusiasm and lead to selling
3 Could this rejection alone cause a steep price drop
Not necessarily alone but it can be a significant contributing factor The price depends on many things overall crypto market sentiment broader economic conditions and Solanas own network performance The rejection adds negative pressure
4 Whats the difference between a BitcoinETH ETF and a Solana ETF
Bitcoin is widely viewed as a commodity by regulators and Ethereum recently gained similar traction paving the way for their ETFs Solana is still under more scrutiny with the SEC previously calling it a security in lawsuits making an ETF approval a much higher hurdle
Advanced Practical Questions
5 Beyond the news what are the technical reasons the SEC might reject a Solana ETF
The core issue is likely the market surveillance requirement To approve a spot ETF the SEC needs to be confident it can prevent fraud and manipulation Regulators may believe the Solana spot market lacks sufficient oversight and a regulated futures market to monitor unlike Bitcoin and Ethereum
6 Does this rejection mean Solana is dead or a bad investment
No not inherently Many groundbreaking technologies face regulatory hurdles early on The rejection is a setback for traditional finance adoption but does not change Solanas underlying technology developer activity or user base It extends the timeline for mainstream Wall Street access
7 What should I watch for next as an investor
SECs Official Reasoning The detailed rejection order will clarify their specific concerns