Solana (CRYPTO: SOL) is trading 5.72% lower Wednesday at $125.21, leading losses across major altcoins after a weeklong rally. The coin is up 18.94% over the past week and trimmed its monthly loss to just 2.18%.
Solana, Cardano, and Avalanche Lead Market Decline
Solana's slide follows a broader downturn in digital assets, with SOL, Cardano (CRYPTO: ADA), and Avalanche (CRYPTO: AVAX) leading losses across the altcoin sector. Bitcoin outperformed in the current drawdown, falling just 2.2% over the last 24 hours compared to Solana's 5.6% dip.
The pullback is seen as a combination of profit-taking and rising global uncertainty, particularly in Asia where the Japanese yen surged amid bond market volatility.
Despite today's selloff, Solana has gained over 17% in the past week and continues to trade near its 50-day moving average, a key technical support level.
Don't Miss:
- Thanks for being a Benzinga reader! As a small thank you, buy $100 worth of crypto on Gemini and receive $20 in free Bitcoin with code BENZINGA20.
- Trade crypto futures on Plus500 with up to $200 in bonuses — no wallets, just price speculation and free paper trading to practice different strategies.
Solana ETF Approved in Canada as U.S. Watch Continues
On the institutional front, Solana scored a small win this week as Canadian regulators approved a series of Solana-based ETFs, according to Bloomberg ETF analyst Eric Balchunas. The ETFs are set to begin trading this week, marking the first time SOL-backed exchange-traded products will be available in North America.
While U.S. regulators have yet to greenlight any Solana ETFs, asset managers including VanEck, Bitwise, and Grayscale have submitted applications. According to Polymarket prediction markets, odds of a U.S. Solana ETF being approved by the end of 2025 currently stand at 82%.
Solana Policy Institute Gathers Momentum in D.C.
In addition to ETF-related headlines, Solana is also making moves on the regulatory front. Decrypt reported that the Solana Policy Institute—a D.C.-based lobbying group focused exclusively on the Solana ecosystem—is preparing to announce a new round of funding.
The organization, led by former Blockchain Association CEO Kristin Smith, is seen as part of a broader push to build political infrastructure that could influence future crypto regulation and support institutional adoption of Solana-based products.
Institutional Buying and Technical Setup Support Bulls
Real estate financing firm Janover disclosed a $10 million Solana purchase this week, acquiring over 80,000 tokens as part of a treasury strategy focused on digital assets. The move is the latest sign of growing institutional interest in Solana, particularly from non-crypto-native firms.
Meanwhile, technical analysis continues to show mixed signals. Solana has been consolidating in a tight range between $125 and $132, with support currently holding at $125.25. The 50-hour moving average at $129.80 and Fibonacci levels near $127.40 remain key zones to watch.
Solana is showing strength relative to other altcoins and could be positioned for a move higher if broader conditions stabilize. A breakout above the $132 level would put the $145 zone—recent swing highs—back in play.
Despite a pullback in Wednesday's trading, Solana is supported by strong fundamentals, improving institutional adoption, and ETF momentum abroad. If the $125 level continues to hold, and macro conditions improve, SOL could be poised for another leg higher.
With Canadian ETF approvals, large institutional purchases, and bullish technical structures still intact, traders are watching to see whether Solana can maintain its outperformance through continued volatility in the crypto market.
Related Bonuses:
- New to crypto? Get up to $400 in rewards for successfully completing short educational courses and placing your first qualifying trade on Coinbase.
- Trade, earn, and grow your crypto portfolio with Crypto.com — plus receive up to $500 worth of rewards in the most popular tokens if you're a new customer.