Solana trades down after US Congress schedules digital asset hearing

Traders Union
All News
Crypto News
Solana slides 2.33% today to $87.94

Highlights

Regulatory risk persists for SOL after SEC suggests the token could be an unregistered security, dampening US institutional participation.
Upcoming US Congressional hearings and the CLARITY Act's advancement may redefine digital asset regulation and affect Solana's compliance landscape.
SOL trades under long-term resistance with downside bias; next week’s expected range is $84.87 to $91.44, with continuing selling pressure likely.

Regulatory uncertainty weighs on sentiment as legal risks persist

SOL continues to face regulatory scrutiny after the SEC classified the token as a potential unregistered security, which has sustained uncertainty surrounding Solana's legal status and institutional accessibility in the United States. The progression of the CLARITY Act in both the Senate and the White House has introduced the possibility of new legislative definitions and requirements for digital assets including Solana. US Congress has scheduled a tokenization hearing in the coming week, with market participants awaiting formal policy direction that could impact networks such as Solana, though price action has remained under broader selling pressure.

Technical boundary divergence as momentum signals remain mixed

Momentum signals for SOL are mixed: while MACD and ADX on the daily chart indicate a mild bullish undertone, the BBP shows pronounced buyer dominance even as the daily trend remains negative. RSI is neutral at 51.10, and neither the Stoch RSI (46.91) nor CCI (42.29) indicate overbought or oversold conditions. The Awesome Oscillator is also neutral and provides no confirmation for the recent downward move. After a small gap down on the open (from $90.04 to $87.40), the price fell 2.33% and currently trades in a moderate intraday volatility range between $86.38 and $89.20. Divergence between intraday sell signals and lingering daily momentum buys highlights an unclear short-term directional bias.

Downside risk favored as weak indicators cap breakout probability

For the upcoming week, the expected volatility band relative to current levels spans $84.87 to $91.44, with a less than 20% probability of an upward move. The baseline scenario is for SOL to trade sideways, holding above support at $86.66 and below resistance between $88.24 and $91.44. A bullish breakout would require a sustained close above $91.44, while a decisive move below $84.87 may accelerate downside momentum and target lower support levels. Ongoing weakness in weekly technical indicators continues to favor the risk of further declines.

Anton Kharitonov, expert at Traders Union, sees Solana struggling under persistent technical and regulatory pressure. He notes that while some momentum indicators hint at stabilization, the price remains firmly capped by overhead resistance and stuck below key long-term averages. Uncertainty around US policy and the looming tokenization hearing amplifies hesitation among institutions. "Until SOL reclaims $91.44, the outlook remains defensive and any bounce is likely to face renewed selling."

Earlier, analysts noted that Solana's outlook was constrained by persistent long-term selling pressure and muted market reactions despite fundamental developments. The current analysis adds a new regulatory dimension, and with US policy shifts on the horizon, a decisive move outside the $84.87–$91.44 band will likely set the tone for Solana’s next directional trend.

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

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.