Solana price has fallen 15% over the past week and is currently approaching a critical support level. Will the bulls step in to hold the line, or is a deeper decline still in the cards?
summation
- Solana prices have fallen 15% over the past week.
- The token is testing the $190 support, a drop below which could lead to further losses in the near term.
- Investors are overhyping the potential approval of the physical Solana ETF.
According to data from crypto.news, Solana (SOL) is 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 and risk aversion gripped markets following a widespread slump triggered by macroeconomic concerns, including the imposition of U.S. tariffs on Chinese imports.
As of press time, market sentiment appears to have improved, moving from extremely fearful to simply fearful following recent dovish comments from the Federal Reserve Chairman who hinted at the possibility of two more interest rate cuts this year.
While there is optimism about a rate cut 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 upcoming November 1 tariff deadline.
Positive developments could play a decisive role in reigniting bullish momentum across cryptocurrency markets, including Solana. That’s because we’re going deeper into the fourth quarter, which has historically been the strongest quarter for crypto assets.
On the daily chart, Solana is once again testing the $190 support zone, which 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 crossing below the 50-day. This is a classic sign of a bearish reversal and, for Solana, could result in further losses in the short term.
If SOL fails to stay above $190, it could fall further towards last week’s low of $170.
On the other hand, a break above $211 would likely reverse the trend and invalidate the bearish outlook.
Strong network performance and ETF hype support the bullish narrative
The Solana network has held its ground even as the market has slowed. In the last 24 hours, DeFi trading volume reached $6.16 billion, surpassing competitors such as Ethereum and BNB Chain. This rapid increase confirms that network activity remains robust as users continue to engage despite the overall market downturn.
Investors are also excited about Solana’s possible launch of its first spot ETF.
Just hours ago, asset manager 21Shares filed Form 8-A with the U.S. Securities and Exchange Commission, signaling the final regulatory approval needed for the Solana exchange-traded fund to become active. If approved, it could pave the way for an influx of new capital from traditional investors, a change that could fuel the token’s long-term upside.
So once things calm down and the broader market regains its footing, Solana could find the breathing space it needs to regain some upward momentum heading into the final stretch of the year.
Disclosure: This article does not represent investment advice. The content and materials presented on this page are for educational purposes only.