Solana slips
Solana (SOL) has had a tumultuous run this week, with new developments adding nuance to the broader narrative of momentum, skepticism, and ecosystem changes.
JPMorgan analysts warned that the newly proposed Solana spot exchange-traded funds (ETFs) may attract only modest inflows (about $1.5 billion in its first year), citing declining on-chain engagement and investor fatigue as possible limitations.
Behind the recent tug-of-war in Solana’s value is renewed evidence that the Solana ecosystem continues to grow despite near-term volatility.
According to 21Shares, Solana generated approximately $2.85 billion in annual revenue from various sectors, including DeFi, artificial intelligence (AI), and trading platforms, a level that reportedly surpassed Ethereum’s initial growth trajectory.
That kind of real performance underscores that SOL’s value is not solely speculative, but is tied to the usage and fees of its decentralized applications.
Still, the path forward is not without challenges. Mixed signals on ETF prospects make investor sentiment volatile.
JPMorgan’s moderate projection has raised doubts among operators who had been betting on a capital flight to Solana’s symbolic fund.
At the same time, DeFi’s declining TVL and active address growth have cast shadows on whether SOL can sustain aggressive growth unless fresh demand or regulatory clarity intervenes.
Looking ahead, whether Solana can successfully overcome resistance near $250 or maintain momentum during choppy markets will depend on the balance between renewed institutional buying and a revival in on-chain metrics. If inflows accelerate and usage recovers, SOL could resume its rise; Otherwise, you may drift sideways or revisit lower support zones in search of renewed foundation.
Solana’s bearish scenario:
A drop from Thursday’s low of $216.90 would likely put the $208.00 to $206.00 region back on the map. Perhaps the September lows between $194.23 and $190.96 can also be revised.
The bearish pressure is likely to remain as long as there is no bullish reversal above the current October high at $237.81.
Solana Bullish Scenario:
A bullish reversal and rise above the October 6 high at $237.81 would likely bring the September high at $253.49 into focus.
