SOL Price Plunges 5% as BlackRock ETF Denial Triggers Sell-Off
Caroline Bishop Aug 12, 2025 07:07
Solana (SOL) trades at $175.36, down 5% in 24h, as BlackRock's ETF denial weighs on sentiment despite positive ecosystem developments and neutral technical indicators.
Quick Take
• SOL currently trading at $175.36 (-5.01% in 24h) • Solana's RSI sits neutral at 51.79 while price tests key support levels • BlackRock's Solana ETF denial on August 9 triggered recent selling pressure
What's Driving Solana Price Today?
The SOL price faced significant headwinds following BlackRock's official denial of plans for a Solana ETF on August 9, which briefly cooled institutional enthusiasm and contributed to today's 5% decline. This regulatory setback has overshadowed recent positive developments in the Solana ecosystem.
Despite BlackRock's denial, seven other major issuers including VanEck and Fidelity have amended their ETF filings this week, with analysts like James Seyffart emphasizing that early applicants may receive priority approval. This suggests the broader institutional interest in Solana remains intact, though BlackRock's rejection has created short-term uncertainty.
Adding to the selling pressure, a whale moved 108,000 SOL worth $17.7 million to exchanges on August 6, contributing to the recent price weakness. However, this whale activity contrasts with July's broader trend, which saw net withdrawals of 123,000 SOL ($23 million) for long-term staking, indicating underlying holder confidence.
On the positive side, institutional adoption continues to advance with Exodus Movement's partnership with Superstate to tokenize Class A shares on Solana, announced August 8. Additionally, the launch of Solana's second-generation smartphone, the Seeker, which began shipping August 4, demonstrates continued ecosystem development beyond DeFi applications.
The current SOL price action reflects the broader 25% decline from July's $206 peak, as profit-taking and market uncertainty have pressured the token from its recent highs.
SOL Technical Analysis: Neutral Momentum Amid Support Test
Solana technical analysis reveals mixed signals as the token navigates between key levels. SOL's RSI currently sits at 51.79, placing it firmly in neutral territory and suggesting neither overbought nor oversold conditions. This neutral reading indicates potential for movement in either direction based on market catalysts.
The MACD histogram shows a bearish reading of -0.0616, signaling weakening momentum for SOL in the near term. However, this bearish signal remains relatively mild, suggesting the downtrend may be losing steam rather than accelerating.
Solana's price action relative to its moving averages presents a nuanced picture. The SOL price trades slightly below the 7-day SMA of $176.15 but remains above the critical 20-day SMA at $175.38, indicating short-term weakness within a broader consolidation pattern.
More encouragingly, SOL continues to trade well above its 50-day SMA of $166.89 and 200-day SMA of $159.01, confirming the longer-term uptrend remains intact despite recent volatility.
The Bollinger Bands position shows SOL at 0.4995, indicating the price sits right at the middle band, which typically suggests a period of consolidation before the next directional move.
Solana Price Levels: Key Support and Resistance
Based on Binance spot market data, Solana support levels are becoming increasingly critical as the SOL price tests lower bounds. The immediate support at $155.83 represents the first major defense line for bulls, while stronger support sits at $137.14.
Current price action suggests SOL is finding some stability near the $175 level, which coincides with the 20-day moving average. A break below this level could accelerate selling toward the immediate Solana support levels.
On the upside, SOL resistance appears at $195.26, representing the next hurdle for any recovery attempt. Beyond that, the strong resistance at $206.30 marks the July peak that would need to be reclaimed for SOL to resume its broader uptrend.
The daily Average True Range (ATR) of $9.15 indicates elevated volatility, suggesting traders should expect continued price swings of this magnitude in either direction.
Should You Buy SOL Now? Risk-Reward Analysis
For swing traders, the current SOL price near $175 offers a potentially attractive entry point given the neutral RSI and proximity to the 20-day moving average support. The risk-reward setup appears favorable with stops below $155.83 and targets toward $195.26.
Day traders should monitor the SOL/USDT pair closely for breaks above $180 or below $170, which could signal the next directional move. The high 24-hour volume of $578 million on Binance spot indicates strong institutional participation.
Long-term investors may view current weakness as an opportunity, particularly given the ongoing institutional adoption developments and the fact that SOL remains well above its 200-day moving average. However, the regulatory uncertainty around ETF approvals suggests patience may be warranted.
Risk management remains crucial given the recent whale movements and regulatory headwinds. Conservative traders should wait for a clear break above $180 before establishing long positions, while aggressive traders might consider dollar-cost averaging into positions near current levels.
Conclusion
The SOL price faces near-term headwinds from BlackRock's ETF denial and recent whale selling, but underlying ecosystem strength and neutral technical indicators suggest the selloff may be temporary. Traders should watch for a decisive break above $180 to signal renewed bullish momentum or a drop below $170 to confirm further downside. The next 24-48 hours will likely determine whether SOL can stabilize above its 20-day moving average or faces additional testing of lower support levels.
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