Solana (SOL) Struggles to Reach $200 After U.S. Spot ETF Launch

Solana (SOL), a leading blockchain platform and cryptocurrency, has encountered challenges in surpassing the $200 price threshold despite achieving a landmark milestone with the introduction of the first U.S. spot exchange-traded fund (ETF). Although the launch initially sparked optimism, the asset’s price retreat mirrors a typical “sell-the-news” reaction, driven by cautious investor sentiment.

Current Price Performance

As of October 30 (Korean Standard Time), Solana is trading at approximately $195 on CoinMarketCap, well below market expectations that ranged from $300 to $1,000 earlier in the month. These projections had been fueled by bullish sentiment during a period of heightened optimism leading up to the ETF approval.

ETF Approval Sparks Optimism

Investor enthusiasm surged ahead of the October 10 deadline set by the U.S. Securities and Exchange Commission (SEC) for approving several spot ETFs. This anticipation triggered aggressive buying activity in both futures and spot markets for Solana.

Once the SEC approvals were finalized, asset managers Grayscale and Bitwise launched their respective Solana-backed spot ETFs, dubbed GSOL and BSOL. BSOL, in particular, demonstrated strong initial performance, amassing $72 million in trading volume within its first two days and managing an asset size of $222 million upon debut.

Despite these impressive figures, Solana’s price recovery has yet to catch up, indicating that substantial demand for the ETFs hasn’t immediately translated into upward price momentum for the token.

Comparisons to Bitcoin ETF Launch

Market analysis conducted by Hyblock Analytics highlights parallels between Solana’s situation and the early performance of Bitcoin (BTC) ETFs. After the approval of spot Bitcoin ETFs, BTC experienced a short-term dip before rebounding as institutional inflows gained traction over the subsequent weeks.

“SOL’s price may face temporary downward pressure following the initial enthusiasm surrounding the ETF launch,” said Hyblock Analytics. “This could be part of a transitional phase as demand for the ETFs begins to ramp up gradually.”

Support and Resistance Levels

Solana’s orderbook analysis presents a mixed outlook: critical support zones are clustered between $188 and $185, while resistance levels appear concentrated around $204 to $207. Additionally, heightened liquidation of long positions across certain exchanges has amplified short-term selling pressure, further stabilizing prices below the $200 mark.

Factors Influencing Future Price Movements

The future trajectory of Solana’s price largely depends on two pivotal elements: the speed of institutional capital allocation and the consistency of sustained ETF trading volume.

Solana has rapidly established itself as a competitive alternative to Ethereum (ETH), thanks to its active decentralized finance (DeFi) ecosystem, flourishing non-fungible token (NFT) markets, and blockchain gaming infrastructure. The growing institutional interest in Solana is evident in the increase in open interest for Solana futures on the Chicago Mercantile Exchange (CME) over the past three months.

However, industry experts caution that the ETF listing alone may not guarantee significant price appreciation for Solana. Cointelegraph notes that sustained institutional inflows and robust trading activity are essential for driving meaningful long-term price growth.

Conclusion

While the launch of Solana-backed spot ETFs marks a promising step forward in institutional integration, its immediate impact on SOL’s price remains modest. For the digital asset to realize sustained growth, focus must shift to fostering deeper investor engagement and building lasting momentum in the ETF market.