Solana Price Surges 7% on ETF Launch, Retreats to $150

The launch of the REX-Osprey Solana + Staking ETF (SSK) on the Cboe exchange has had a notable impact on the price of Solana (SOL). The ETF, which began trading with Anchorage Digital as the custodian and staker of its assets, marked a significant milestone as the first staked Solana ETF in the United States. This development was met with enthusiasm, as Solana's price surged to a key resistance level, briefly reaching $160. However, the momentum did not sustain, and the price retreated to around $150, indicating a lack of follow-through from the initial excitement.

The introduction of the ETF was anticipated to drive institutional capital into Solana's ecosystem, potentially marking a trend change if the price could sustain above $159. However, the price drop below $150 suggests that the market may be cautious about the long-term impact of the ETF. Analysts had forecasted a wave of new ETFs in the second half of 2025, with the Solana ETF serving as a litmus test for future developments. Despite the initial price surge, the subsequent retracement indicates that the market is still assessing the true value and impact of the ETF.

Solana turned down from the 50-day simple moving average ($156) on Monday, indicating that the bears are fiercely defending the level. On the downside, the bulls are trying to arrest the pullback at the 20-day exponential moving average ($148). This suggests buying on every minor dip. If the rebound sustains, the possibility of a break above the 50-day SMA increases. The SOL/USDT pair could ascend to $168 and eventually to $185. Sellers are likely to have other plans. They will try to pull the price to the solid support at $140. Buyers are expected to defend the $140 level with all their might, because a break below it may open the doors for a fall to $126 and then to $110.

The pair rebounded off the 50-SMA on the 4-hour chart and rose above the 20-EMA. That signals aggressive buying at lower levels. If buyers sustain the price above the 20-EMA, the pair could jump to $155 and later to $159. A break and close above $159 will complete an inverse head-and-shoulders pattern, which has a target objective of $192. Contrarily, a break and close below $144 suggests the bears are selling on every minor rally. The pair may then decline to the $140 to $137 support zone.

The launch of the ETF coincided with other developments in the Solana ecosystem, including the introduction of tokenized stock trading through Backed's xStocks on platforms like Bybit and Jupiter. These advancements highlight Solana's growing ecosystem and its potential to attract more institutional interest. However, the price performance of Solana in the first half of 2025, which saw a 17% decline, suggests that the market remains cautious about the cryptocurrency's prospects.

The launch of the ETF also brought attention to the regulatory environment for cryptocurrencies in the United States. Anchorage Digital's role as the custodian and staker of the ETF's assets underscores the importance of regulated staking solutions in attracting institutional investors. The ETF's launch is seen as a step forward in providing compliant crypto yields to institutional investors, potentially paving the way for more regulated products in the future.

In summary, the launch of the REX-Osprey Solana + Staking ETF had an immediate positive impact on Solana's price, but the subsequent price retracement suggests that the market is still evaluating the long-term implications of the ETF. While the ETF marks a significant milestone for Solana and the broader cryptocurrency market, its impact on the price of SOL remains to be seen. The developments in the Solana ecosystem, including tokenized stock trading and regulated staking solutions, highlight the cryptocurrency's potential to attract institutional capital, but the market's cautious response to the ETF launch indicates that more time is needed to assess its true value.