US Securities and Exchange Commission (SEC) Delays Decision on Solana ETFs, Sparking Investor Concern

The US Securities and Exchange Commission (SEC) has postponed its ruling on various altcoin exchange-traded funds (ETFs), including those linked to Solana, leading to a drop in investor confidence in SOL. This setback has triggered significant outflows in the spot market for Solana.

Investor withdrawals totaling $16 million were recorded in under 24 hours following the SEC's announcement of the decision delay. The commission has extended the review period for proposed rule changes to allow for a thorough examination of the ETFs' operations.

The ongoing bearish sentiment surrounding SOL is evident in the steady outflow of capital from its spot markets. In the past day, a total of $16.43 million has been pulled out, marking the seventh consecutive day of outflows that now exceed $250 million.

When an asset experiences such outflows, it signifies that investors are offloading their holdings due to concerns about short-term price prospects. Traders are choosing to liquidate their positions to avoid potential losses, reflecting a lack of confidence in SOL's immediate recovery.

Analysis of SOL's Moving Average Convergence Divergence (MACD) indicator on a daily chart supports the prevailing bearish sentiment. Currently, the MACD line is under the signal line, suggesting a bearish trend in the market. This divergence indicates a higher selling pressure than buying interest, hinting at a potential decline in SOL's value.

Despite trading at $126.82 currently, SOL faces the risk of dropping to $110 if buying momentum continues to weaken. To avoid this scenario, the coin needs to establish a robust support level around $135.22. A successful bounce from this level could propel SOL's price to reach $138.84 and beyond, signaling a resurgence in buying interest.