A recent 5% price spike of Solana to $160, triggered by news of the first US ETF based on staking, was soon erased. This event illustrated the ongoing technical instability of the asset.
Overview of Solana Market Situation
Solana (SOL) surged 5% to $160 on Monday after the announcement of the first US ETF based on staking. However, within 24 hours, this gain was completely wiped out, reflecting price instability across various time frames.
Technical Levels and Support Analysis
On the lower time frame, SOL has failed to maintain a position above the 50-day and 200-day exponential moving averages for over a month. The vulnerability of dropping below $144 could lead to a decline to $124 or even $95–$100, where the support weakens. Currently, the $148 level is under pressure, and a drop below $137 would confirm lower lows.
Future Price Movement Prospects
Since failing to break the key resistance at $180 in May, SOL has continued to trend downward within a descending channel. If the bearish trend persists, a retest of the daily order block between $120 and $95 remains realistic, which could present a more attractive long-term entry point.
The current state of the Solana market demonstrates high volatility and risks associated with price movements. Investors should closely monitor key support and resistance levels to make informed decisions.
