Solana News Today: Solana's $130 Test: Growth or Prolonged Downturn?

Solana's native token plunged 9% on Monday as traders braced for a critical support level following the launch of the Fidelity Solana ETF (FSOL) and Canary Marinade's SOLC, marking a sharp reversal for the cryptocurrency after months of gains according to market reports. The price, which hit a 24-hour low of $129.02, now faces scrutiny at the $130 threshold, a level analysts say could determine whether the asset regains momentum or enters a prolonged slump.

The selloff coincided with a challenging earnings report from Solana Co., the corporate entity behind the blockchain network. The firm posted a net loss in Q3 2025 despite raising $508 million through a private investment in public equity (PIPE) transaction in September. Revenue for the quarter totaled $697,000, driven by $342,000 in staking rewards, but selling, general and administrative expenses surged to $4.6 million, up from $2.9 million in the prior year. The results highlighted the company's struggle to balance capital expenditures with revenue growth as it expands its digital asset treasury strategy.

Investors' concerns were compounded by the timing of the ETF launch. While the Fidelity and Canary offerings attracted nearly $400 million in inflows, the market's initial enthusiasm waned as derivatives data revealed a 0.61% increase in open interest for SOL futures over 24 hours, signaling mixed sentiment. CoinGlass data showed a 2% rise in open interest over four hours, suggesting short-term volatility but no clear trend.

The earnings call provided further insight into Solana's financial pressures. Executives acknowledged the need to address rising costs, including a $1.5 million discretionary bonus in Q3 and reduced R&D spending due to curtailed clinical trial activities according to financial reports. "We remain focused on long-term growth, but the path requires navigating near-term headwinds," said Joseph Chi, Solana's Executive Chairman, during the call according to the earnings transcript.

Market analysts have turned their attention to technical indicators as the price hovers near its 52-week low. The $129.02 level represents a key psychological barrier, with traders monitoring whether buyers step in to defend it. A break below that level could trigger further declines, while a rebound might signal stabilization.

The broader crypto market has also been influenced by the ETF rollout. Trading volume for SOL increased 60% in the last 24 hours, reflecting heightened interest. However, the price's inability to hold above $140-a-level-it-briefly-reached-earlier-in-the-week-has-raised-questions-about-the-sustainability-of-recent-bullish-momentum.

The earnings call provided further insight into Solana's financial pressures. Executives acknowledged the need to address rising costs, including a $1.5 million discretionary bonus in Q3 and reduced R&D spending due to curtailed clinical trial activities according to financial reports. "We remain focused on long-term growth, but the path requires navigating near-term headwinds," said Joseph Chi, Solana's Executive Chairman, during the call according to the earnings transcript.

Solana's challenges are emblematic of broader pressures facing the crypto sector. While the company's Q3 results included a 12% year-over-year revenue increase compared to 2024, its net loss widened to $25.8 million, driven by warrant adjustments and financing costs. This contrasts with Soluna Holdings, a rival firm expanding into AI compute and renewable energy, which reported a 37% revenue jump in Q3 despite similar industry headwinds.

As the market digests these developments, the focus remains on Solana's ability to execute its treasury strategy while managing costs. With $500 million in recent funding, the company has the liquidity to pursue long-term initiatives but must demonstrate a clear path to profitability. For traders, the coming days will test whether the $130 level can hold as a floor-or if the pullback will deepen into a broader correction.