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- SOL dropped 19% in a week, slipping below $200 after a rapid rally.
- An Oct. 10 ETF ruling could trigger fresh institutional inflows.
- Key support sits between $185–$200; holding it may reset bullish momentum.
Solana’s price fell sharply this week, but investors are already looking ahead to a potential catalyst that could reshape its trajectory. With a key ETF ruling approaching in October, Solana may soon face its most pivotal moment yet in attracting institutional capital.
SOL Falls After Rapid Rally
After surging to $253 earlier this month, Solana (SOL) tumbled nearly 19% to $192, slipping below the $200 threshold for the first time in weeks. The quick reversal erased much of its recent momentum and raised doubts about near-term strength. Traders point to profit-taking and broader crypto volatility as key drivers behind the pullback.
Despite the setback, technical indicators suggest SOL could be approaching a short-term bottom. The Relative Strength Index (RSI) dipped below 30, historically a level where relief rallies tend to follow.
Spotlight on Grayscale’s Spot ETF Decision
Much of the market’s attention now turns to October 10, when the U.S. Securities and Exchange Commission (SEC) will deliver its first ruling on Grayscale’s proposed Solana spot ETF. If approved, the product could open the door for deeper institutional flows, similar to the impact Bitcoin and Ethereum ETFs had over the past year.
Institutional ownership of SOL remains limited compared to its larger peers, with less than 1% of supply held by major funds. Firms like Pantera Capital argue this under-allocation leaves room for significant upside if ETFs gain approval. Stripe and PayPal’s recent integrations further strengthen the case for Solana’s mainstream adoption.
Technical Outlook: Key Levels to Watch
SOL’s correction is unfolding within a demand zone between $185 and $200, overlapping with a critical Fibonacci retracement band. Holding this range could reset bullish momentum. A breakdown below $185, however, would likely invite deeper selling pressure, with the next support zone sitting between $170 and $156.
Also Read: XRP & Solana ETFs Near U.S. Launch as Final Amendments Submitted
For now, intraday charts show signs of sellers losing steam, raising the possibility of a short-term rebound before the ETF decision acts as the next big catalyst.
Solana’s recent dip highlights the volatility that continues to define its price action. But with an SEC ruling on a spot ETF just weeks away, SOL could be entering a decisive chapter. Approval may accelerate institutional adoption and reset momentum, while rejection would likely test support levels further. Either way, October promises to be a defining month for Solana’s market narrative.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
