Solana Drops 5% Amid ETF Uncertainty, Price Below $170

Solana (SOL) has experienced a significant decline, with its price dropping below the $170 mark. This downturn follows a period of intense competition around the $171 level, where the token has been oscillating within a key range. The price has been under pressure, slipping below $170 as momentum cools amid uncertainty related to the Solana ETF. This week, the token is down 5% and has stayed under $180 for six days. This dip comes even as 65% of SOL’s supply is staked and Solana-based apps generated significant revenue in the first quarter.

The technical indicators for SOL are pointing to a cautious trend. The token is trading inside the Ichimoku Cloud, with the conversion and baseline lines showing no clear direction. The BBTrend indicator sits at -4.31, indicating ongoing bearish pressure. A potential EMA death cross adds further risk, and a drop below the $160 support could send the price toward $141. Regulatory uncertainty adds to the hesitation, as the SEC has delayed decisions on Solana ETF filings, citing concerns about market manipulation.

Despite the recent decline, institutional interest in SOL is rising. The token has been down 5% over the past seven days and has traded below $180 for six consecutive days. However, without catalysts, it may continue to consolidate in the $165-$175 range. If there is a close below the $170 support, the price could drop towards the $162 support in the short term. Technical indicators support potential new peaks in the coming months for SOL, but the current trend suggests a cautious approach.

Solana is showing signs of weakness after repeated rejections at the $170 resistance level, prompting analysts to question whether a drop to $150 could be imminent. The Layer 1 fast horse has surged nearly 90% from its recent dip below $100, rising to crash resistance levels in the $170-$180 zone. This encouraging momentum has been met with resistance, leading to a potential retracement. Traders should monitor the $180-$185 zone as a critical support area; a break below could invalidate the bullish setup and lead to a retest of $170. The current price action suggests that SOL is under short-term pressure, with the potential for further declines if support levels are breached.