Solana News Today: Solana Price Dips Below $165 as ETF Hype Fades and Fed Holds Rates

The price of Solana (SOL) dropped below $165 as initial excitement over potential exchange-traded fund (ETF) listings faded and the Federal Reserve’s decision to hold interest rates deepened the selloff in digital assets. The momentum that drove Solana in July, fueled by speculative ETF-related chatter, lost steam in the absence of confirmation from regulators. Without new developments, the market saw a wave of selling, especially after Bitcoin also experienced a decline. Over the course of the week, SOL lost more than 6.6% of its value [1].

On the technical front, Solana's 4-hour chart showed key support levels at $175.8 and $170 being breached, with the price currently trading near $163.73. The next critical level to watch is $160, which holds both psychological and technical significance. The Relative Strength Index (RSI) has fallen to 22.87, signaling an oversold condition that may encourage a short-term bounce. However, this alone is unlikely to reverse the broader downtrend without a shift in the macroeconomic environment [1].

The 9 and 21 exponential moving averages (EMAs) are trending lower, reinforcing the bearish bias. If Solana fails to hold above $160, the next likely price targets could be $150 or even $142. To regain upward momentum, the bulls would need to reclaim the $170 level and subsequently break through $175.80 to rebuild a more favorable price structure. A temporary rebound may be triggered by the RSI reading, but without broader market improvement, such a move is expected to be short-lived [1].

Market watchers are also closely monitoring volume patterns during pullbacks. A significant increase in buying volume during dips could indicate that institutional or “smart money” investors are accumulating assets at discounted levels. Such activity would be a positive sign for long-term holders, though it remains to be seen whether it will be enough to counter the ongoing decline [1].

With no progress on the ETF front and the Fed maintaining its dovish stance, Solana remains under downward pressure. Traders are closely watching key support levels and the RSI for any signs of a reversal, while investors remain cautious in the face of ongoing uncertainty in the cryptocurrency market [1].

Source: [1] Solana Price Breaks Below $165: ETF Hype Fades, Fed Impact (https://cryptoticker.io/en/solana-price-breaks-165-etf-hype-fades-fed-impact)