Solana price drops 2.6% despite ETF buzz as first U.S. staking fund stirs institutional demand
Further strengthening the bullish case is increased activity from major institutional players
As of July 4, 2025, Solana (SOL) is trading at approximately $150.29, reflecting a modest intraday decline of 2.6%.
The cryptocurrency remains in a consolidation phase following a multi-month rally earlier this year.
Highlights
- Nvidia stock fell 3% to $153.30 but remains in a bullish long-term trend, supported by a breakout and a pending golden cross.
- Overbought RSI levels suggest short-term consolidation or pullback.
- Long-term fundamentals remain strong, driven by dominant AI chip market share and strategic global partnerships.
On the daily chart, SOL is forming a symmetrical triangle pattern, a neutral technical formation typically preceding a significant breakout. This triangle is defined by descending resistance from the March highs and ascending support from the April lows, with the current price action oscillating tightly between $145 and $153.
Key resistance lies at $153, which aligns with the upper boundary of the triangle. A daily close above this level would indicate a bullish breakout, potentially triggering a rally toward the next psychological resistance at $160 and thereafter the March high around $175. The 50-day and 100-day moving averages are both sloping upward and currently sit just below the current market price, providing dynamic support. The Relative Strength Index (RSI) is hovering near the neutral 50 level, suggesting neither overbought nor oversold conditions, and thus confirming a market in equilibrium awaiting a directional catalyst.
SOL price dynamics (May 2025 - July 2025). Source: TradingView
On the downside, immediate support is found at $141, which has held during several recent dips. A break below this level would expose SOL to further losses, potentially dragging it to $130, where previous accumulation zones lie. The MACD histogram is currently flat, underscoring the indecisiveness in the market.
Institutional interest and ETF developments bolster sentiment
The broader market backdrop for Solana has improved markedly over the past month, driven largely by a series of bullish fundamental catalysts. Most notably, the recent approval and launch of the first U.S.-based Solana staking ETF has invigorated investor interest. According to the Cryptonomist, the ETF has attracted over $12 million in early inflows, making it a significant milestone in Solana’s journey toward institutional adoption. This development comes amid broader interest in crypto staking products and underscores growing demand for yield-generating digital assets.
Further strengthening the bullish case is increased activity from major institutional players. DeFi Dev Corp recently disclosed a substantial acquisition of over 640,000 SOL tokens, indicating rising confidence in Solana's long-term value. Additionally, staking activity on the network has surged, contributing to tighter supply dynamics and improved investor sentiment.
On-chain metrics reinforce this optimism. The number of wallets holding at least 0.1 SOL has reached a record high of 11.44 million, indicating expanding retail participation. Meanwhile, futures open interest on SOL has soared to $7.22 billion, highlighting growing derivatives market activity. Option volumes have also increased sharply, suggesting that sophisticated traders are positioning for a significant price movement in the near term.
Potential breakout toward $165–$175; downside risk to $130
Considering the current consolidation pattern and the influx of positive news, Solana is well-positioned for a bullish breakout in the short term. If the price can decisively close above the $153 resistance level, it would confirm a breakout from the symmetrical triangle. In this scenario, SOL could quickly advance toward $160, with $165 and $175 as subsequent targets.
However, failure to break above this range and a drop below $141 would negate the bullish setup and suggest a potential retest of $130. Such a decline could be driven by broader market weakness or profit-taking following the recent rally.
The REX-Osprey Solana + Staking ETF (SSK), the first U.S.-listed Solana staking fund, launched on the Cboe BZX Exchange, offering investors indirect exposure to SOL with yield from staking. The ETF saw strong initial interest, recording $33 million in trading volume and $12 million in net inflows on its first day.
