SEC Delays ETF Decisions, Causing $16 Million Withdrawal from Solana Spot Markets

On Tuesday, the U.S. Securities and Exchange Commission (SEC) announced its decision to delay evaluations on numerous altcoin exchange-traded funds (ETFs), including those associated with Solana (SOL).

This postponement has further weakened investor confidence toward SOL, resulting in substantial capital outflows from its spot markets.

Investor Withdrawals Amid SEC Delay—$16 Million Taken Out in 24 Hours

In recent filings, the SEC revealed its intention to extend the review period for several ETFs linked to notable assets, including Solana. The regulatory body stated that it has designated additional time to examine proposed rule modifications that could allow these ETFs to launch.

This turn of events has intensified the bearish trend surrounding SOL, reflected by the significant capital withdrawals recorded over the past day. As of the latest updates, approximately $16.43 million has been exited from the market, marking a troubling seventh consecutive day of outflows that have surpassed $250 million.

When there are significant spot outflows like this, it indicates that investors are liquidating their holdings, a reflection of dwindling confidence in SOL’s potential for short-term recovery. Many traders appear to be opting to realize their gains rather than risk incurring further losses.

Additionally, the Moving Average Convergence Divergence (MACD) for SOL, when analyzed on a daily chart, indicates a bearish sentiment. At the time of reporting, the MACD line (blue) sits below the signal line (orange).

The MACD metric serves as a tool for tracking price trends, assessing momentum changes, and identifying potential buy or sell signals based on the interactions between the MACD line, signal line, and accompanying histogram shifts.

A MACD line situated under the signal line is an indicator of a bearish market, suggesting that the sell-side dominant activity outpaces buying engagement, portending a possible decline in value.

Solana at a Critical Juncture: Can SOL Maintain $126 or Plummet to $110?

As of this report, SOL is trading at $126.82. With a decrease in buying momentum, the altcoin is at risk of descending to $110, a level not seen since August 2024.

A resurgence in buying activity could avert this downward trend. For SOL to gain traction, it needs to establish solid support at $135.22. Should it succeed, the price might rally toward $138.84 and beyond.