- Solana fell from $253 to $192 in less than a week, losing its recent gains.
- An upcoming ETF decision on October 10 could influence larger investment interest in SOL.
- Institutional investors currently hold less than 1% of Solana’s supply, according to Pantera Capital.
- SOL’s technical setup signals the potential for a short-term price rebound.
- Prediction markets estimate a 41% chance that SOL will reach a new high in 2025.
Solana (SOL) dropped below $200 on Thursday, ending its rally and wiping out recent gains that brought it to $253 earlier in the week. This decline represents a 19% slide in less than seven days and has led traders to question short-term momentum.
According to data, the drop occurred as investors anticipate a major decision scheduled for October 10 regarding whether the U.S. Securities and Exchange Commission (SEC) will approve the first spot SOL exchange-traded fund (ETF) from Grayscale. Approval could allow institutional investors wider access to Solana, similar to previous growth seen with Bitcoin and Ethereum ETFs.
While the REX Osprey Staking SOL ETF, launched in July, allows spot exposure to SOL, its structure differs from a full spot product and is seen as less significant. Grayscale’s proposal is the first of several, with the SEC also set to review five additional applications from companies like Bitwise, 21Shares, VanEck, and Canary, leading up to a final October 2025 deadline.
Asset managers from Pantera Capital have described SOL as “next in line for its institutional moment” and noted that less than 1% of the token’s supply is held by institutional investors, compared to 16% for Bitcoin and 7% for Ethereum. Pantera Capital believes a spot ETF approval could accelerate mainstream adoption, especially as companies like Stripe and Paypal expand integrations with Solana.
Market signals remain mixed. Prediction market Polymarket gives only a 41% probability of SOL reaching a new all-time high in 2025, suggesting continued uncertainty among investors.
Technical analysis shows SOL has bounced between $200 and $185, a price area that often sees increased buying and technical corrections. The current drop coincides with the Relative Strength Index (RSI) once again falling below 30, a level that has historically signaled potential price bottoms for Solana. Since April 2025, this RSI setup has preceded a rebound in four out of five cases.
If the current support does not hold and prices drop below $185, analysts expect that the next significant support zone lies between $170 and $156. Prediction markets and past price structure both point to volatility ahead as investors await the SEC’s ruling and further developments.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Salesforce Stock Drops Despite Buy Ratings, Analysts See 38% Upside
- KuCoin Appeals $19M Canadian Fine Over Anti-Money Laundering Failures
- Alphabet Shares Drop as EU Mulls Second Fine for Google Favoritism
- Dutch Bitcoin Reserve Rumor Debunked: Lawmakers Passed No Bill
- KuCoin Fined $19.5M CAD by Canada for Anti-Money Laundering Failures
