Solana News Today: Hong Kong's ETF Push Turns Solana's $175 Support Into a High-Stakes Test

Solana (SOL-USD) is facing renewed downward pressure following a recent price correction that has raised concerns among market participants about its next support level. The cryptocurrency briefly dipped more than 10% on the daily charts before stabilizing at a 7.4% decline, reigniting speculation that the $175–$176 level could become a short-term floor for the asset. This level was last seen earlier this month, and its retesting highlights growing volatility amid broader market corrections. Despite the recent pullback, Solana has maintained its gains over longer timeframes, with a 4.4% rise in the weekly charts and a 17% increase since August 2024 [3].

The bearish sentiment is partly fueled by macroeconomic uncertainties, including concerns over the economic outlook amid heightened political tensions and the potential impact of increased tariffs. Analysts have noted that the price decline could be attributed to profit-taking following Bitcoin and Ethereum hitting record highs, a common occurrence in speculative markets [3]. Meanwhile, the recent approval by Hong Kong’s Securities and Futures Commission (SFC) for OSL, a licensed crypto exchange, to offer Solana to retail investors in both U.S. dollars and Hong Kong dollars has been seen as a positive catalyst. This move expands access for local investors to a broader range of digital assets, reflecting Hong Kong’s broader strategy to position itself as a global virtual asset hub [1].

On the technical front, Solana has been trading in a consolidation phase around the $196 level, having corrected from recent local highs. Analysts have pointed to mixed signals from on-chain metrics, including the Spent Output Profit Ratio (SOPR), which currently sits above 1.0, indicating coins are being spent at a profit [4]. However, divergences in active addresses—peaking at 5.1 million during a price dip—suggest that participation has waned as the price has moved upward. This divergence is often a precursor to slowing momentum, and sustained activity above 4.6 million addresses may be necessary to validate continued strength [4].

Looking ahead, the $211 level is considered a key pivot point. A breakout above this level could propel the price toward $222, a level highlighted by analyst Ali Martinez as a potential price magnet [4]. Conversely, a failure to hold above $211 could lead to a retest of $202 and eventually expose the $189–$190 support zone. The 100-day simple moving average currently sits at $189, reinforcing the significance of this area as a potential floor. Further downward movement beyond this level could expose the $170–$180 range, with the risk of a deeper decline to the August low of around $155 [4].

The institutional interest in Solana continues to grow, with developments such as VanEck’s filing for a Solana ETF backed by JitoSOL staking tokens adding another layer of credibility to the asset [2]. Additionally, Solana’s ecosystem has seen a significant increase in token buybacks, rising from $14.5 million to $46.8 million in just two weeks, a 158% increase. These buybacks, driven by protocol-level initiatives, have contributed to a more robust token economy and have positioned Solana as a key player in institutional-grade blockchain infrastructure [2]. If approved, such an ETF could inject billions into the market and accelerate Solana’s revaluation.

While the near-term outlook remains uncertain, the long-term fundamentals of Solana remain intact. The token continues to outperform major cryptocurrencies such as Ethereum, which has seen more modest gains, and Bitcoin, which has declined over the same period [2]. With a circulating supply of 540 million tokens, Solana’s valuation base remains sensitive to capital inflows, supported by tangible on-chain activity such as protocol revenue and cross-chain integrations. Analysts remain cautiously optimistic, with conservative projections targeting the $250–$300 range, and more bullish models suggesting potential for a retest of the $295 all-time high if momentum sustains [2].

Source:

[1] 1 Brand-New Catalyst for Solana That Could Portend Great ... (https://www.fool.com/investing/2025/08/24/1-brand-new-catalyst-for-solana-that-could-portend/)

[2] Solana (SOL-USD) Price Forecast - Trading News (https://www.tradingnews.com/news/solana-sol-usd-price-forecast-whale-accumulation-and-etf-buzz-push-sol-toward-295-usd)

[3] Solana Price Crashes 10%: Is It Headed For $175? (https://watcher.guru/news/solana-price-crashes-10-is-it-headed-for-175)

[4] Solana (SOL) Price Analysis: Analyst Predicts a Rally Soon (https://coincodex.com/article/72056/solana-price-analysis-analyst-predicts-rally-soon/)