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- SOL stalled near $240 due to 3.38M SOL withdrawn from staking.
- ETF speculation keeps investor demand alive despite short-term hurdles.
- Technicals suggest breakout potential, but rejection at $240 could push SOL to $220.
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Solana (SOL) price showed signs of slowing after two strong days of gains, rising just 3% on Friday, October 3, to hover near $230–$240. Despite early optimism, SOL failed to break the $240 psychological resistance, reflecting headwinds from recent staking withdrawals. On-chain data from StakingRewards highlights that total Solana staking deposits fell from 411.28 million SOL to 407.9 million SOL since September 18, following the US Fed rate cut. This 3.38 million SOL outflow, worth roughly $787 million at current prices, has increased sell-side liquidity, capping short-term price momentum.
Staking Outflows Create Short-Term Pressure
The sudden release of staked tokens adds near-term pressure on Solana, as previously locked coins flood the market. Analysts warn that such supply shocks make it harder for SOL to sustain rallies, particularly around key resistance levels. While some investors see this as a potential entry point, others are cautious, waiting to see if demand from macro tailwinds and institutional interest can absorb the increased supply.
ETF Speculation Fuels Optimism
Positive sentiment remains strong, driven by potential Solana ETFs. On September 29, Bloomberg’s Eric Balchunas suggested approval odds for a Solana ETF are “near certainty,” keeping demand alive despite staking outflows. Coupled with macro support from Fed easing, investors remain hopeful for a breakout if SOL can surpass $245.
Also Read: Solana Liquidity Surges as $SOL Eyes Major Breakout
Technical Indicators Point to Mixed Outlook
Technical signals show both caution and opportunity. Solana has triggered a Golden Cross, with the 5-day moving average crossing above the 8-day and 13-day averages, indicating potential upside momentum. The MACD line is positive at 1.80 versus the signal line at 1.37, while RSI at 57.6 leaves room for further gains. Breaking $245 could open a path toward $280, but rejection at $240 may push SOL back to $220 if staking outflows accelerate.
Solana remains at a crossroads. ETF optimism and technical momentum support potential gains, yet staking withdrawals and supply pressures create immediate hurdles. Traders should watch the $240–$245 zone closely to gauge SOL’s next move.
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 a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
