The recent surge in Solana's price in July 2025, driven by ETF rumors, ended with a sharp decline. Let's analyze the key reasons and potential implications.
Reasons for Solana's Price Drop
Solana's strong run in recent months has come to a halt. This has been accompanied by a wave of selling prompted by the Fed's decision to pause interest rate changes. Combined with Bitcoin's decline, Solana's price fell over 6.6% in a week, dropping below $165.
SOL Chart Analysis
The SOL/USD chart indicates that the price broke support at $175.8 and $170 and is currently trading around $163.73. The critical level is $160. The RSI is deeply oversold at 22.87, signaling a potential bounce. However, the 9 and 21 EMAs clearly indicate a downtrend.
What to Expect from Solana in the Future
If the $160 level fails, further declines towards $150 or even $142 could occur. Bulls need to reclaim $170, then $175.80, to regain market structure. A short-term bounce seems likely due to the oversold RSI, but it may be short-lived without macro improvements.
Analyzing Solana's current state reveals that its price is dependent on various factors, including the overall market and technical levels. Close attention to changes is advised.
