SEC Delays Altcoin ETFs, SOL Loses $250M in 7 Days

The US Securities and Exchange Commission (SEC) has delayed its decision on multiple altcoin exchange-traded funds (ETFs), including those tied to Solana (SOL). This delay has had a significant impact on investor sentiment, leading to a substantial outflow of capital from Solana's spot markets.

On March 11, the SEC announced that it would extend the review period for proposed rule changes that would enable these ETFs to become operational. This decision has exacerbated the bearish sentiment surrounding SOL, resulting in $16.43 million being removed from the market within a 24-hour period. This marks the seventh consecutive day of outflows, with the total amount exceeding $250 million.

When an asset experiences spot outflows, it indicates that investors are selling their holdings, reflecting a lack of confidence in the asset's short-term price recovery. Traders are choosing to cash in their accrued gains to prevent further losses on their investments.

The Moving Average Convergence Divergence (MACD) indicator for SOL, observed on a daily chart, supports this bearish outlook. As of the latest data, the coin's MACD line is below its signal line, indicating that selloffs exceed buying activity among market participants. This suggests a further potential drop in value.

SOL is currently trading at $126.82. With waning buying pressure, there is a risk that it could fall to $110, a low last reached in August 2024. However, a strong resurgence in buying activity could prevent this decline. For this to happen, SOL would need to establish a strong support flow at $135.22. If successful, it could propel its price to trade at $138.84 and above.