Solana (SOL) has been very volatile, with its price dropping sharply in recent trading periods. According to the latest data, SOL traded at $183.42, a 16.18% decrease over the past day. The market capitalization of the cryptocurrency fell nearly fifty percent to $100.23 billion, while the trading volume increased to $20.5 billion, indicating higher market activity.
The steep drop occurred after a phase of relative stability, ranging from about $219 to $220. In the middle of the session, the price dropped to below $190 but briefly rebounded and held steady between $180 and $190. Analysts observe that this high volatility can be a short-term correction of the market.
According to the technical data, Solana is currently facing key levels of support and resistance. The $180 level has acted as a temporary floor, while it faces resistance around $200-$210. This sharp decline was accompanied by a 180% surge in trading volume, indicating increased market engagement.
Analysts monitoring the Solana chart have noted that the cryptocurrency has remained above a rising trendline, and it is on the verge of transforming its character (CHOCH), which typically indicates the possibility of a bullish run. A clean break above $210 may signal a structural change and pave the way for resistance at $250-$255. Nonetheless, the short-term trend is negative, as there is considerable selling pressure.
According to Bloomberg senior analyst Eric Balchunas, the probability of a US Solana ETF approval has become very high. Balchunas estimates that the likelihood of approval has been successfully fixed at 100% after the SEC listing standards amendments. The removal of the old 19b-4 process and 240-day review cycle has streamlined the approval process, leaving only S-1 registration statements as a regulatory requirement.
The development may be crucial to market sentiment towards Solana. The release of a US-approved Solana ETF is expected to attract institutional investors, potentially boosting the price of this cryptocurrency. The approval process is progressing, and market participants are closely following the situation.
Solana has strong fundamentals despite the short-term bearish trend. Recently, the total market capitalization of Solana stablecoins reached a record high of $13.8 billion, indicating high activity within the ecosystem. Traders may be looking for consolidation between $180 and $190 before any recovery can occur.
The trend of future prices will likely rely on both technical confirmations and regulatory factors. If the $180 support holds and market confidence revives, SOL may seek a comeback to $200 - $210. On the other hand, any collapse below $180 may result in additional losses.
Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp
_____________
Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.