Solana's price has faced a significant downturn, dropping by 3% during the latest trading session and raising questions on future performance. Following a more extensive decline of 18% from mid-May, SOL is now trading at $153.19, down from $187.19. Open interest for Solana has fallen from $3.20 billion to $2.87 billion, indicating reduced investor confidence.
This bearish trend can be attributed to the SEC's recent announcement regarding two proposed staking ETFs from REX Shares and Osprey Funds. According to SEC Associate Director Brent J. Fields, the SEC has "unresolved questions" about whether these funds meet regulatory criteria under the Investment Company Act of 1940. The implications of such scrutiny have halted transaction activities among traders, further pushing SOL's price downward.
Despite the recent downturn, there remains a glimmer of optimism, with Polymarket odds for Solana ETF approval rising above 80%. However, current market sentiment leans toward caution, as traders prepare for potential further losses if SOL fails to hold the $150 support level, which could lead to drops to $140 or even $120.
The recent movements reflect a challenging environment for Solana, where regulatory feedback may shape investor activity in the immediate future. As the landscape for cryptocurrencies continues to evolve, investors should remain vigilant regarding developments in SEC policies and their repercussions.
This bearish trend can be attributed to the SEC's recent announcement regarding two proposed staking ETFs from REX Shares and Osprey Funds. According to SEC Associate Director Brent J. Fields, the SEC has "unresolved questions" about whether these funds meet regulatory criteria under the Investment Company Act of 1940. The implications of such scrutiny have halted transaction activities among traders, further pushing SOL's price downward.
Despite the recent downturn, there remains a glimmer of optimism, with Polymarket odds for Solana ETF approval rising above 80%. However, current market sentiment leans toward caution, as traders prepare for potential further losses if SOL fails to hold the $150 support level, which could lead to drops to $140 or even $120.
The recent movements reflect a challenging environment for Solana, where regulatory feedback may shape investor activity in the immediate future. As the landscape for cryptocurrencies continues to evolve, investors should remain vigilant regarding developments in SEC policies and their repercussions.
