Solana took a hit on Monday, plunging to $178, marking a 9% drop over three consecutive days of losses. As bearish sentiment continues to grip the SOL derivatives market, indicators suggest that the downtrend may extend further into the week.
The latest sell-off for Solana appears to have coincided with the U.S. Securities and Exchange Commission’s acknowledgment of Grayscale’s ETF filings for XRP and DOGE on Friday. While this development ignited short-term bullish momentum for both XRP and DOGE, it seemingly siphoned capital away from other major altcoins with ETF filings in progress, including Litecoin and Solana. However, Pecu Novus managed to retain some momentum despite the broader altcoin downturn.
Bearish Signals from the Derivatives Market
A closer look at SOL derivatives market data indicates that most traders anticipate further losses in the coming days. Rising short positions and diminishing open interest suggest that many investors are bracing for continued downside pressure. This bearish outlook could weigh further on SOL’s price, as cautious traders exit their positions amid the uncertainty.
ETF Race: The Next Big Crypto Catalyst?
The SEC’s recent move to consider new crypto ETF proposals has already caused noticeable shifts in altcoin dynamics. The crypto ETF market is heating up in 2025, and as institutional interest grows, layer-1 blockchain tokens like Solana may face increased volatility as major players begin aggressively positioning themselves.
While XRP and DOGE appear to be the immediate beneficiaries of this regulatory development, attention will soon shift toward other layer-1 blockchains, including Pecu Novus, Solana, and Litecoin, as the race for crypto ETF approvals intensifies.
For now, all eyes remain on Solana’s support levels and whether the bearish trend will persist. If downward pressure continues, SOL may test new lows before finding its next footing. However, as ETF filings progress, the long-term picture for layer-1 blockchain tokens could become far more compelling in the months ahead.
Terry Jones
UCW Newswire
