Solana slides today: Key reasons behind the decline

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Solana slips 10.38% today to $78.01

Highlights

US spot Solana ETFs have attracted over $900 million in net inflows since launch, with Nasdaq formally proposing the VanEck JitoSOL ETF to the SEC for regulated staking yield access.
Solana's ecosystem developments include the Solana Payments rollout and the upcoming Alpenglow upgrade promising sub-second transaction finality, though on-chain DEX volume collapsed and SOL deposits to exchanges surged.
SOL trades at $78.01 well below major moving averages (MA-20 at $83.69, MA-50 at $106.86, MA-200 at $158.00), with strong bearish momentum and likely downside toward the $60.69–$71.92 range.

Sustained ETF inflows amid ongoing selling and ecosystem upgrades

US spot Solana ETFs recorded net inflows totaling over $900 million since launch, with streaks of daily inflows. Nasdaq formally proposed the VanEck JitoSOL ETF to the SEC, which is under review and would offer US investors regulated exposure to staking yield via the JitoSOL liquid staking token. On-chain activity reported a sharp collapse in DEX volume and increased SOL deposits to exchanges, while Solana’s ecosystem saw rollout of Solana Payments and the announcement of the upcoming Alpenglow network upgrade targeting sub-second transaction finality, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees Solana trading under notable technical stress. Price action remains deeply below all major moving averages, with sellers dominating both short- and long-term sentiment. Despite positive ETF-related news, recent on-chain data shows weakening organic demand and increased exchange inflows — a classic sign of capitulation risk. The potential for a breakdown below $60.69 is significant, while current volatility exposes investors to further drawdowns. "Right now, I view any attempts to buy the dip as premature until SOL reclaims key resistance and negative momentum decisively slows."

Viktoras Karapetjanc, expert at Traders Union, notes strong institutional interest with over $900 million in Solana ETF inflows and the potential VanEck JitoSOL ETF. He views recent regulatory progress and ecosystem upgrades as solid long-term tailwinds, despite short-term volatility. Macro and fundamental factors remain supportive of broader adoption, pointing to opportunity once corrective pressure stabilizes. "As Solana continues to build institutional bridges and deliver network upgrades, I believe further growth is likely after this consolidation phase."

Parshwa Turakhiya, analyst, highlights persistent bearish momentum and aggressive selling pressure as Solana remains under the $80 mark. The daily gap and high volatility suggest uncertainty, but oversold signals could offer a short-term bounce opportunity. He sees sideways consolidation as the most probable scenario in the next week. "For active traders, I’d watch for potential mean reversion setups, but the trend favors caution on fresh longs."

Bearish momentum confirmed by downside gap and failed support

Solana’s price at $78.01 sits well below all major moving averages: MA-20 at $83.69, MA-50 at $106.86, and MA-200 at $158.00. This setup signals persistent pressure from sellers across short-, medium-, and long-term timeframes, with the nearest resistance positioned at Ichimoku’s Kijun line around $86.81 and no immediate dynamic support levels identified.

Momentum indicators are strongly bearish as both the MACD and ADX confirm downside strength, while RSI and Stoch RSI show the asset trending toward oversold territory. The daily change is significant, with SOL dropping $9.04 or 10.38% and establishing a gap down between yesterday’s close at $87.05 and today’s open at $81.84; the current price is near today’s low of $77.12, reflecting high intraday volatility and reinforcing the selling tone after the open. BBP points to persistent seller dominance throughout the session, and although the Awesome Oscillator is neutral, the general intraday trend is confirmed by multiple momentum and oscillator signals without major divergences.

Previously it was reported that Solana continues to trade well below all major moving averages, with technical indicators including the MACD, ADX, and RSI confirming a strong bearish trend and emerging oversold conditions. Immediate resistance is identified at $86.81, while price action suggests ongoing consolidation or further downside remains likely in the near term.

Source of Data: SOL Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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