Sol Strategies' Downfall Triggers Solana Sell-Off as ETF Optimism Grows

Solana’s native cryptocurrency,

, has dropped sharply by 19% over the last week, hitting a low of $210—the weakest price since September 8. Its market value has fallen to $114 billion, mirroring a broader downturn in the crypto market, which is now valued at $3.8 trillion. Chart analysis points to more downside risk, as a double-top at $250 and a rising wedge pattern both signal bearish sentiment. Momentum indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are also trending lower, adding to worries about further losses Solana Price Is Crashing: These Catalysts May Trigger a SOL Rebound [ 1 ].

A major driver behind the recent sell-off is the downfall of

, a prominent treasury management group focused on Solana. The company’s value plunged 63% this week, dropping from $19 to $7, sparking fears of forced liquidations or treasury sales that could put even more pressure on SOL’s price. The sudden resignation of the CEO has further shaken trust in the company’s stability, raising doubts about the overall strength of the Solana ecosystem. Experts caution that such institutional turmoil could flood the market with additional supply, making price recovery more difficult Sol Strategies Crash Puts Solana (SOL) Price Under Heavy Pressure [ 3 ].

Despite these short-term challenges, there is still hope for a turnaround, fueled by several upcoming events. The Securities and Exchange Commission (SEC) is anticipated to approve several spot SOL ETFs, with Polymarket giving the approvals over a 90% probability. JPMorgan analysts predict these funds could draw in $6 billion in their first year, following a similar path as Ethereum’s $13 billion inflow. Furthermore, the Alpenglow upgrade, scheduled for later this year, will transition Solana to a proof-of-staking system to boost scalability, which could attract more institutional investors Solana Price Is Crashing: These Catalysts May Trigger a SOL Rebound [ 1 ].

Wider economic trends are also shaping market sentiment. The Federal Reserve’s 0.25% rate cut in late September, along with hints at further reductions, has encouraged risk-taking. Solana’s leading role in the

coin space—assets that often benefit from cheaper borrowing—could help it outperform if monetary policy remains loose. Still, traders are wary, as SOL’s price is testing crucial support at $210 and $200, where algorithm-driven selling could intensify the decline Solana Price (SOL) Crash as Sellers Take Control - BanklessTimes [ 2 ].

Technical signals indicate a possible reversal if the $210 support level is maintained. Holding this threshold could spark a rally back toward $250, with some analysts pointing to inverse head-and-shoulders formations as signs of a bullish turnaround. On-chain data, such as on-balance volume and accumulation/distribution trends, suggest the token may be nearing the end of a distribution phase, potentially setting the stage for a sustained move higher. However, reclaiming the $205 resistance remains essential, as this level has historically served as a key barrier to further gains Solana Hits Resistance [ 4 ].

The overall performance of the crypto sector remains a major variable. Bitcoin’s drop from a yearly high of $124,000 to $112,000 has weighed on altcoins, with Solana’s 17% retreat from its peak highlighting its vulnerability to market-wide shifts. Recent large-scale liquidations totaling $15–19 million have further dampened sentiment. Nevertheless, Polymarket data and ongoing ETF filings point to rising institutional faith in Solana’s long-term prospects, especially as it aims to surpass

in the second half of the year Solana Price Prediction: SOL Reclaims $200 Amid ETF Filing Frenzy [ 5 ].