TLDR
- Over the last week, Solana (SOL) has seen an approximately 15% drop, standing around $119.
- With a critical support level at $128 being breached, technical analysts caution about further possible declines.
- Despite price drops, a notable 103.28% surge in 24-hour trading volume highlights heightened market activity.
- Newly introduced Solana ETFs (SOLZ, SOLT) are underperforming compared to Bitcoin's market peers.
- In Washington D.C., the Solana Policy Institute has been established to champion regulatory interests.
Solana has been trending downwards, suffering significant losses this week. As of April 3, 2025, SOL trades near $119, reflecting daily and weekly setbacks of approximately 3.72% and 15% respectively.
Currently placed sixth by market cap at about $60.74 billion, the cryptocurrency's decline occurs amid industry-wide uncertainty and broader economic changes.
In recent trading, SOL edged upward from around $124.76 to temporarily hit $135.69 before dropping to $116.98, then slightly recovering.
One silver lining amid the negative trend is the enormous 103.28% rise in daily trading activity, exceeding $6 billion, suggesting potential shifts in market sentiment.
Chart patterns indicate waning support levels.
Technical analysts closely examining Solana's price movement had earlier flagged warning signs. Crypto analyst Ali Martinez noted how trendlines diminish with continuous testing, resulting in SOL falling beneath its pivotal support near $128.
Frequent testing of a trendline weakens it until it ultimately gives way. #Solana $SOL pic.twitter.com/sSCbU0AgUw
— Ali (@ali_charts) April 2, 2025
SOL is currently forming a descending triangle, implying a continuation of the downward trend, as attempts to break above the pattern's upper boundary were thwarted.
Bollinger Band analysis indicates increased volatility: SOL is near its lower band, around $116, signaling sustained downward momentum. Resistance lies at the middle band ($129.73) and upper band ($143.42).
The Relative Strength Index (RSI) hovers near 38.45, near oversold territory. Absent strong buying encouragement, SOL may decline further before any significant recovery.
Key areas of support and resistance merit attention.
Currently, SOL faces immediate resistance at $135.69, with $147.05 and $152.77 as subsequent resistance markers for meaningful recovery.
On the support front, $116.98 is pivotal. Failure to hold could see subsequent support at $113.18 and $110.06. Should bearish pressure mount, potential tests could approach support levels at $99, $79, or even $58.
The $118 mark has become a critical area observed by traders, historically acting as a solid demand zone where buyers mitigate selling forces and push prices higher.
New ETFs Struggle for Traction
Adding to the challenges for Solana is the muted response to its recent ETF launches. On March 20, Volatility Shares unveiled SOLZ and the 2x SOLT, but early trading volumes have been lackluster.
Bloomberg's ETF authority, Eric Balchunas, reported that Solana's futures ETFs have underperformed Bitcoin's BITO ETF by almost 80 times during initial trading days—a sign of limited institutional appetite for SOL through these ETFs, potentially impacting market demand.
The new Solana futures ETF didn't make much impact; one million in volume initially is standard for regular ETFs, yet it pales in comparison to Bitcoin, roughly 80 times less. $BITO \"s first few days or $IBIT As noted, the farther one strays from Bitcoin, the fewer assets there tend to be—a remark that even poetically rhymes. pic.twitter.com/OqoIpzdeel
— Eric Balchunas (@EricBalchunas) March 31, 2025
Policy Development in Washington
In regulatory matters, Miller Whitehouse-Levine, a prominent crypto advocate, has launched the Solana Policy Institute in Washington. This nonprofit aims to influence regulatory dialogue as scrutiny of digital assets grows. for Solana’s Whitehouse-Levine, once leading the DeFi Education Fund, stressed the importance of intelligent regulation in crypto. This move occurs amid escalating needs for regulatory clarity for blockchain ventures.
Despite the recent slump, some investors remain hopeful about Solana's long-term potential. The token's total supply stands at 597,686,854.75 SOL, with 512,627,741.55 SOL circulating.
Price forecasts suggest a possible 11.01% rise for SOL if bullish trends emerge, potentially reaching $140.10 within the next month. Solana’s At present, traders are keenly observing whether the $118 support can endure or if further selling might drive SOL to lower levels.
Maisie, a seasoned financial journalist, has contributed to Moneycheck.com, level-up-casino-app.com, Computing.net, and is the Editor in Chief at Blockfresh.com.
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