Solana (SOL) experienced a short-lived rally following the announcement of the first-ever Solana ETF featuring staking capabilities. However, analysts are cautioning about potential risks.
Solana's Surge Fueled by ETF News
According to data from crypto.news, Solana surged nearly 6% to an intraday high of $158.30 on Monday but quickly retraced to around $152.60. Nonetheless, this figure remains approximately 44% above its year-to-date low, with a market capitalization exceeding $81.6 billion.
Investor Caution and Derivatives Market
However, the initial excitement faded as investors tempered their expectations about the ETF's success. A key reason for this skepticism is the relatively small size of Grayscale’s Solana Trust (GSOL), which has managed to attract only about $75 million in assets over 43 months.
Technical Analysis and Predictions for Solana
Technical signals suggest a possible retest of support at $143.10, coinciding with the 23.6% Fibonacci retracement level. A decisive break below this level could open the path toward further downside.
Despite the short-term positive news, multiple factors such as the decline in stablecoin market capitalization and reduced trading activity may negatively impact Solana's future performance.
