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Why Is Solana Slumping Despite Soaring ETF Interest? Insider Secrets Revealed!

Crypto
Last updated: May 18, 2025 4:13 am
Crypto
Published May 18, 2025
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Why Is Solana Slumping Despite Soaring ETF Interest? Insider Secrets Revealed!

Solana Faces Hurdles but ETFs and Network Growth Offer Hope

Solana’s price has paused below $200, reflecting a broader crypto market cooldown. Currently at $171.45, it’s down 7.40% from its recent peak. This dip mirrors trends seen in Bitcoin and Hedera Hashgraph.

However, there’s optimism on the horizon. The U.S.Securities and Exchange Commission might approve spot SOL ETFs. Companies like Grayscale and VanEck are among the applicants. Approval odds are now at 81%, according to Polymarket. This could attract more investors.

interest in solana-linked ETFs is evident. The 2X Solana ETF, launched in February, has seen a steady rise in assets. It has gathered nearly $30 million since launch. In May alone, it added $9.6 million, up from $8.3 million in April. This suggests strong investor interest. If approved, these ETFs could boost Solana’s value. the 2X Solana ETF, for instance, has shown consistent growth. It aims to double Solana’s daily returns. Despite its 1.85% fee, the fund’s success hints at strong demand. Spot ETFs, with lower fees, could see even higher inflows. The SOLT ETF aims to double Solana’s daily returns. It has attracted nearly $30 million since February, with $9.6 million in May alone.

Spot Solana ETFs, with lower fees, could see even higher demand. The recently-launched XXRP ETF, tracking XRP, has gained over $106 million in assets, suggesting strong investor interest in cryptocurrency ETFs.

Beyond ETFs, Solana’s network is thriving.Transactions and active accounts have surged in 2025. Over the past 30 days, transactions rose by 66%, and active accounts reached 101 million. These fundamentals could support a renewed rally.

Technically, Solana’s price has pulled back to $172 after peaking at $185. It’s near the 38.2% Fibonacci retracement level.The 50-day and 100-day moving averages are close to forming a mini golden cross, a bullish signal. An inverse head and shoulders pattern and Murrey Math Lines trading range indicate a potential uptrend. Bulls are eyeing a retest of the $200 resistance. A breakout could lead to $252, while a drop below $150 would invalidate the bullish outlook.With these factors, Solana remains a promising investment.

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