Key points:
SOL remains below $200, despite impressive daily trading volumes of Solana ETFs noted by analysts.
Some analysts suggest SOL’s price movement could reflect ETH’s sluggish performance following the Ethereum spot ETFs launch.
Throughout September, traders and analysts maintained an optimistic outlook on SOL (SOL), driven by the US Securities and Exchange Commission’s deadline of Oct. 10 for several spot ETF approvals, alongside the strong showing of BTC and ETH ETFs.
At that time, data indicated that various investor groups were increasing their SOL futures and spot holdings; however, the US government shutdown delayed the deadline, and a significant cryptocurrency market liquidation event on Oct. 10 saw the altcoin’s price plunge to as low as $147 on some exchanges.
Currently, two new SOL ETFs are trading this week. Grayscale Investments introduced their staking-enabled Solana spot ETF (GSOL) on Wednesday, while the Bitwise Solana Staking ETF (BSOL) launched on Tuesday. Cointelegraph revealed that BSOL debuted with $222 million in assets and concluded its second trading day with $72 million in volume.
Before the US government shutdown and the Oct. 10 sell-off, analysts anticipated that a successful approval and launch of a Solana ETF would trigger a SOL price surge to the $300 to $600 range. However, the altcoin is still trading below $200.
When asked about the current situation and whether the SOL trading has turned into a sell-the-news scenario, Hyblock analysts stated:
“BTC’s ETF launch and BTC price also had a similar relationship on launch. BTC price trended flat and down (around -5%) despite growing inflows. Eventually, the floodgates opened and inflows really spiked, which marked the bottom on BTC price. The SOL ETF may be going through a similar cycle as the initial excitement fades away.”
The analysts further noted that this week’s “FOMC timing doesn’t help as many participants (especially institutions who would buy via ETF) are likely de-risking ahead of the meeting. We don’t view it as a red flag; it’s expected behavior for high-profile events such as these.”
Related: 21Shares files HYPE ETF, Bitwise Solana ETF sees ‘huge number’ on day 2
Current information indicates sellers are dominating SOL’s price action, with the orderbook showing support at $188 to $185 and resistance at $204 and $207.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
