Solana (SOL) has experienced a notable decline, dropping 3.86% to $225.67, even as the broader cryptocurrency market shows gains during the “Uptober” rally. Increased trading volume—up 31.8%—indicates heightened selling pressure as traders respond to technical and regulatory factors.
Analysts are closely watching the $230 support level, noting that a decisive break below this threshold could push SOL toward $214.84. The decline comes after a week of solid gains, as the market anticipates a regulatory decision from the SEC regarding spot Solana ETFs, expected by October 10.
Technical Indicators Signal Bearish Momentum
Solana has been consolidating below the $238.56 resistance level (23.6% Fibonacci retracement), while the $230 support is being tested. Key metrics show slowing bullish momentum:
- 24h RSI: 52.51, suggesting there is still room for further downside before reaching oversold conditions.
- MACD histogram: +3.04, indicating a deceleration of the recent bullish impulse.
- 7-day SMA: $226.77, with the price closing slightly below, highlighting short-term weakness.
If SOL breaks below the $230 support decisively, technical models suggest a potential retest near $214.84 (61.8% Fibonacci retracement). Conversely, a favorable SEC ruling on the spot ETF could reignite bullish momentum and stabilize the price.
Market Outlook
Solana’s near-term trajectory remains closely tied to regulatory catalysts. Investors and traders are monitoring the SEC decision as a key determinant for SOL’s price action. While Uptober optimism supports other altcoins such as Ethereum (+0.26%) and BNB (+6.52%), Solana faces pressure as the market positions itself ahead of the ETF verdict.
