Muted session for Solana as SEC classifies Solana as potential unregistered security

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Solana slips 0.40% as ETF outflows grow

Highlights

Goldman Sachs liquidated all Solana ETF positions after SEC regulatory action, causing a sharp drop in altcoin ETF eligibility for U.S. institutions.
Institutional Solana ETF inflows fell 91% from their peak as most large holders sold, partially offset by Morgan Stanley's $29.9 million Bitwise ETF allocation.
SOL trades below key moving averages with bearish momentum, likely to remain in a $83.50–$86.75 range amid heavy selling and oversold signals.

Solana ETF outflows surge as regulatory risks prompt institutional retreat

Goldman Sachs recently liquidated its entire Solana ETF position and withdrew from all altcoin ETF exposure after the SEC classified Solana as a potential unregistered security, effectively restricting ETF eligibility for many U.S. institutions and triggering outflows from major holders. The resulting regulatory constraints have caused spot Solana ETF inflows to collapse by 91% from their previous peak, reducing the pool of new institutional capital supporting the asset. Meanwhile, Morgan Stanley increased its Solana ETF exposure to $29.9 million via the Bitwise Solana Staking ETF, although this isolated buying has not offset broader selling pressure.

Bearish momentum persists as Solana fails key technical levels

Technical analysis highlights SOL currently sitting below the SMA-20 at $88.52, the SMA-50 at $85.95, and well under the SMA-200 at $109.29. The daily Ichimoku Kijun at $89.91 acts as immediate resistance overhead. Momentum on the D1 chart remains weak: MACD and ADX are neutral, RSI and CCI are trending lower, and the Awesome Oscillator confirms prevailing downside. Stochastic RSI and Bull/Bear Power (BBP) both indicate oversold conditions, with heavy seller dominance persisting. Despite this setup, low volatility and a narrow session gap suggest limited intraday reversal potential so far.

Sideways price action expected as oversold condition builds

For the next five trading days, the expected volatility band is $83.50 to $86.75. The baseline scenario points to SOL trading in a sideways range as oversold conditions accumulate. A move above $89.90 would be required to trigger potential recovery toward the $87–$90 region, while a decisive drop below $83.50 could invite further downside as sentiment and weekly momentum remain weak.

Anton Kharitonov, expert at Traders Union, believes Solana faces tough institutional headwinds after Goldman Sachs’ ETF exit and the SEC’s ongoing restrictions. He sees weak demand and seller dominance, with technical indicators confirming low momentum and no recovery signals yet. The base case remains a sideways move inside $83.50 to $86.75, with any breakouts requiring firm validation. “Unless SOL recaptures $89.90, I remain defensive and do not expect meaningful upside,” Kharitonov says.

Earlier, analysts noted that Solana was experiencing sustained bearish momentum amid reduced institutional liquidity and persistent selling pressure. The latest developments reinforce this negative outlook, with intensifying regulatory headwinds and diminished ETF inflows highlighting the importance of monitoring sentiment shifts as potential catalysts for any reversal in SOL’s rangebound trajectory.

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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