Solana Price Approaches Key Support Level: Will It Fall to $170?

Solana price nears critical support.

Solana's price has dropped 15% over the past week and is currently hovering near an important support level. As market conditions fluctuate due to macroeconomic concerns, traders are left wondering if the cryptocurrency will rebound or continue its downward trend.

Key Takeaways

Solana's price stands at $193 following a 15% decline in the last week.
The cryptocurrency faces critical support at the $190 level.
Market sentiment is cautiously optimistic due to potential U.S. interest rate cuts.
Solana has seen strong activity in DeFi trading, surpassing competitors.
News of a potential Solana ETF could positively impact investor sentiment.

Current Price Situation for Solana

Solana's price has recently taken a hit, dropping 15% in the last week, and is now precariously close to a critical support level. Currently trading at $193, it represents a decline of 5.3% in the last 24 hours and about 15.2% over the past week, as reported by crypto.news.

Investor caution has increased following a downturn linked to macroeconomic issues, particularly new U.S. tariffs imposed on Chinese imports. As of now, however, market sentiment is shifting slightly from extreme fear to just fear due to the Federal Reserve Chair’s recent comments that hinted at possible interest rate cuts later in the year.

While rate cuts typically bode well for cryptocurrencies, traders remain vigilant, looking for developments in the upcoming U.S.–China trade discussions as the November 1 tariff deadline approaches. Positive outcomes could reignite bullish momentum across the crypto sector, including for Solana, especially as we move into the historically bullish fourth quarter.

Analyzing Solana's Support Levels

On the daily charts, Solana is again testing the $190 support zone, which has served as a significant floor since late August.

Solana price is testing $190 support — Source: crypto.news

However, technical indicators suggest a bearish trend. The 20-day moving average has crossed below the 50-day moving average, a signal that typically suggests a bearish reversal. If Solana cannot maintain its position above $190, it could potentially fall to $170, which marked last week's low. Conversely, a significant breakout above $211 could invalidate the current bearish outlook.

Positive Developments for Solana's Network and ETF Prospects

Despite the overall market slowdown, Solana's network has remained robust. In the past 24 hours, it recorded an impressive $6.16 billion in decentralized finance (DeFi) trading volume, surpassing both Ethereum and BNB Chain. This increase demonstrates that user activity on the Solana network continues to thrive even amid market uncertainty.

Moreover, there is growing excitement around the anticipated launch of the first spot exchange-traded fund (ETF) for Solana. Hours ago, asset management firm 21Shares submitted a Form 8-A with the U.S. Securities and Exchange Commission (SEC), indicating it is close to receiving the necessary regulatory approval for its Solana ETF. Once authorized, this could attract new investments from traditional markets, further bolstering the token's long-term growth potential.

As we draw closer to the year's end, Solana may find itself in a position to regain its upward momentum once broader market conditions stabilize.