- Solana (SOL) drops 15% weekly, falls below $120 after breaking key support
- Newly launched Solana ETFs (SOLZ, SOLT) see minimal volume, lagging BITO
- Solana Policy Institute launches in DC, led by Miller Whitehouse-Levine
Solana (SOL), until recently a top-performing digital asset, shed 15% of its value over the past week. The decline briefly pushed SOL to the seventh spot in market capitalization rankings below Circle’s USDC stablecoin before it reclaimed the sixth position despite a 4.54% drop over the prior 24 hours, according to CoinMarketCap data.
At press time, SOL traded near $118.49 with a valuation of approximately $60.74 billion.
Technical Analysis Points to Weakness
Crypto analyst Ali Martinez highlighted a critical technical weakness before the recent drop, noting that trendlines weaken with repeated testing. Martinez shared a chart showing SOL’s price testing a key support level multiple times since May 2024 before projecting a downward move.
That warning played out, with SOL breaking its crucial support near $128 and dropping towards $118. Bollinger Bands (BB) indicate increased volatility, with SOL trading near the lower Band support ($116), suggesting downward momentum. The cryptocurrency faces immediate resistance at the middle Band ($129.73) and further resistance at the upper Band ($143.42).
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The Relative Strength Index (RSI) sits near 38.45, a level approaching oversold territory. However, without strong buying support emerging, SOL could continue its downward slide before a meaningful recovery.
Solana ETFs Struggle for Traction
Adding to SOL’s headwinds is the lukewarm response to its recently launched ETFs. On March 20, Volatility Shares introduced the Solana ETF (SOLZ) and the 2x Solana ETF (SOLT).
However, Bloomberg ETF analyst Eric Balchunas reported the Solana futures ETFs saw minimal volume, performing roughly 80 times worse than Bitcoin’s BITO ETF in their first few days. This underperformance suggests limited institutional interest in accessing SOL via these specific ETF vehicles currently, potentially reducing demand and market support.
Solana Policy Institute Launched in D.C.
Market challenges aside, one of Washington’s top crypto lobbyists, Miller Whitehouse-Levine, launched the Solana Policy Institute. This nonprofit will advocate for Solana’s interests in regulatory discussions, as per a report.
Whitehouse-Levine, formerly head of the DeFi Education Fund, emphasized the need for “smart regulation” as lawmakers increase scrutiny of digital assets.
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