The Solana price plunged 2.6% in the last 24 hours to trade at $171 as of 12 p.m. EST on a 43% pump in trading volume to $4.39 billion.
This slump in the SOL price comes despite Franklin Templeton filing an S-1 prospectus with the SEC for a Solana ETF (exchange-traded fund).
The move underscores a broader trend where major asset managers, including Grayscale, Bitwise, and VanEck, seek regulatory approval for Solana-based investment products as institutional adoption grows.
This increasing demand highlights rising confidence in Solana’s market potential and a shift toward diversifying crypto offerings beyond Bitcoin.
BitBull Capital CEO Joe DiPasquale emphasized that asset managers expand their investment products as regulatory conditions become more favourable.
Solana Price Tests Key Support At $170 Amid Bearish Channel And Potential Reversal
The SOL/USDT chart shows an interesting setup, showing bearish and bullish signals. Currently, the price is trading at $170.83 , with a daily range of $168.07 – $172.76, reflecting a 1.12% gain.
The most notable pattern on the chart is a bearish channel that has dominated price action since SOL peaked at nearly $280. However, the price is now testing a strong support level around $170, which coincides with a double bottom formation, signaling a potential reversal.
SOLUSDT Analysis Source: Tradingview
A parabolic curve formed between November and December led to a strong rally, but this was followed by a corrective phase, where SOL has been trading within a bearish channel. If the price successfully holds the $170 support and breaks out of the channel, it could trigger a strong uptrend.
Key resistance levels to watch include $208.08 (a significant previous high) and $266.34, which aligns with the LuxAlgo trendline break. A successful breakout above these levels could push SOL back toward $280.
From a momentum perspective, the Relative Strength Index (RSI) currently sits at 34.75, with the signal line at 37.96. This suggests that SOL is approaching oversold conditions, increasing the likelihood of a reversal.
If the price breaks above $175 – $180, this could confirm a bullish breakout, with price targets set at $208, $266, and $280. On the downside, failure to hold $170 could see SOL retesting lower support zones around $150 – $130.
The market is at a critical turning point, with SOL showing potential for a strong upward move if it breaks the bearish structure. Traders should watch for confirmation above $180 before entering long positions, while a stop-loss below $165 would help manage downside risk. If the double bottom pattern holds, this could begin a new bullish phase for SOL.
Investors Flock To Buy Solana Layer 2 Hurtling Toward $23 Million
As the Solana price falls, investors are rushing to grab Solaxy (SOLX) , a Layer 2 Solana solution that has already raised $22.9 million in its presale.
With meme coin trading surging on Solana’s Pump.fun, it’s facing increasing congestion and potential outages, especially after trading surged following the launches of TRUMP and MELANIA meme coins.
Solaxy is designed to ease congestion and boost transaction speeds on the blockchain.
It introduces a Layer 2 sidechain that processes transactions off-chain before bundling and submitting them to Solana’s Layer 1 for processing.
This approach reduces congestion, lowers transaction fees, and improves overall efficiency.
An analyst from 99Bitcoins, with over 725k subscribers, predicts that SOLX could 10x post-launch.
Investors can also earn staking rewards of up to 179% annually, with over 6.2 billion $SOLX tokens already staked.
Currently, $SOLX is priced at just $0.001642 and can be purchased using ETH, USDT, BNB, or SOL.
Buy before a price hike in less than 10 hours to lock in the best deal.
Learn more about Solaxy here.
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