HomeBTC UpdatesWhat is causing the decrease in Solana (SOL) price today?

What is causing the decrease in Solana (SOL) price today?

Published on


Solana’s SOL Price Drops by 2% in 24 Hours: What’s Driving the Correction?

The price of Solana’s native token, SOL (SOL), has experienced a 2% drop in the last 24 hours, reaching $173.20. This decline is part of a correction that began two days ago, resulting in an overall decrease of approximately 8.25% so far.

One of the main factors contributing to the drop in SOL’s price is the outperformance of its layer-one blockchain rival, Ethereum (ETH), as well as increasing outflows from the Solana ecosystem.

The decline in SOL’s price coincides with the increasing likelihood of approval for spot Ether exchange-traded funds (ETFs) in the United States. The SOL/ETH pair has dropped by 22.65% since May 20, when the U.S. Securities and Exchange Commission (SEC) contacted Ether ETF applicants to update their filings.

ETFs are popular investment vehicles that allow investors to gain exposure to an asset without owning it directly. If spot Ether ETFs are approved, it could lead to increased demand for ETH, potentially causing funds to flow out of the Solana ecosystem and into Ethereum.

Additionally, the total value locked (TVL) across the Solana ecosystem has decreased significantly in May, indicating a loss of confidence in the platform. The news of potential Ether ETF approval on May 20 may have accelerated the outflows from the Solana ecosystem.

From a technical perspective, SOL’s price declined as its daily relative strength index (RSI) approached the overbought level of 70. A resistance confluence around $186 intensified selling pressure, leading to the current price level of $173.20.

Looking ahead, SOL is trending inside an ascending parallel channel, with a lower trendline target aligning with the 50-day exponential moving average (50-day EMA) at around $155.75. This suggests a potential further decline of about 10.70% from current price levels.

It is important to note that this article is for general information purposes and should not be taken as legal or investment advice. The views expressed are the author’s alone and do not necessarily reflect those of Cointelegraph.

Latest articles

Will BDAG Reach $30? LTC Millionaires Change Focus as MANTRA and Ondo Join Forces – Latest Crypto News BTC

BlockDAG Emerges as Top Contender in Crypto Market: $10 by 2025 and $30...

Influencers Rally Behind BlockDAG as Toncoin and Ethereum Thrive in the Crypto Market – The Merkle News – Crypto News BTC

Crypto Influencers Rally Behind BlockDAG, Triggers $46.8M Presale As Toncoin’s Value Rises &...

Investors Left High and Dry by 70% of Defunct Korean Exchanges

Investors in South Korea's Cryptocurrency Market Face Shocking Revelation by Regulators Investors in South...

4 Important Things Nigerians Should Know about the Popular Telegram Game, Hamster Kombat Launch Date

Key Things to Know About Hamster Kombat: A Trending Telegram Game for Nigerians Hamster...

More like this

Will BDAG Reach $30? LTC Millionaires Change Focus as MANTRA and Ondo Join Forces – Latest Crypto News BTC

BlockDAG Emerges as Top Contender in Crypto Market: $10 by 2025 and $30...

Influencers Rally Behind BlockDAG as Toncoin and Ethereum Thrive in the Crypto Market – The Merkle News – Crypto News BTC

Crypto Influencers Rally Behind BlockDAG, Triggers $46.8M Presale As Toncoin’s Value Rises &...

Investors Left High and Dry by 70% of Defunct Korean Exchanges

Investors in South Korea's Cryptocurrency Market Face Shocking Revelation by Regulators Investors in South...
bitcoin
Bitcoin (BTC) $ 108,718.13
ethereum
Ethereum (ETH) $ 3,941.42
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 1,150.90
xrp
XRP (XRP) $ 2.38
solana
Solana (SOL) $ 190.36
usd-coin
USDC (USDC) $ 1.00
staked-ether
Lido Staked Ether (STETH) $ 3,942.78
tron
TRON (TRX) $ 0.320356
dogecoin
Dogecoin (DOGE) $ 0.192726