SOL Faces Volatility Amid ETF Launch and Market Dynamics

According to Cointelegraph, SOL experienced a brief 5% rally to $160 following the announcement of its first exchange-traded fund (ETF) going live. However, this momentum was short-lived as the altcoin's gains were erased within 24 hours, highlighting ongoing technical weaknesses across various time frames. Currently, SOL is trading near a critical supply cluster between $144.5 and $147.7. A breakdown below $144 could potentially lead to a decline towards $124 or even the $95–$100 range, where support is notably weaker. In recent weeks, SOL has struggled to maintain its position above the 50-day and 200-day exponential moving averages (EMAs), despite several bullish formations. The $148 level is under pressure, and a drop below $137 would confirm a lower low, diminishing the prospects for a near-term bullish trend. For SOL to regain upward momentum, it must successfully retest the $145–$137 demand zone and recover above $160. On a broader scale, the trend remains bearish, with SOL failing to breach the key resistance at $180 in May and trending downward within a descending channel since then. The altcoin's performance has been closely tied to Bitcoin's fluctuations, with SOL declining nearly 50% since January 19, despite Bitcoin hovering near all-time highs. If the bearish trend continues, a retest of the daily order block between $120 and $95 is possible, offering a more attractive long-term entry point. Conversely, a strong daily close above $160 could shift sentiment and trigger a bullish reversal, carrying momentum into higher time frames. SOL's current trading price around $148 is supported by its UTXO realized price distribution (URPD), which tracks the price levels at which tokens were acquired. This metric indicates a strong holder concentration within the $144.5 to $147.7 range, suggesting that maintaining above $144 is crucial. A breach below this level could signal potential weakness and increase the likelihood of testing lower support zones. Resistance is noted at $157, where 5.55% of the supply is concentrated, posing a challenge for upward momentum. For now, the dense $144.5-$147.7 cluster serves as a solid base, where investors are expected to defend SOL's price. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.