Solana Slips as ETF Outlook and Declining On-Chain Activity Weigh on Momentum
Solana has slipped from recent highs after JPMorgan warned that spot Solana ETFs may see only modest inflows. Despite $2.85 billion in annual ecosystem revenue, declining DeFi activity and mixed investor sentiment are testing SOL’s ability to hold support above $216.
Solana slips
Solana's (SOL) has seen a tumultuous stretch this week, with fresh developments adding nuance to the broader narrative of momentum, scepticism, and ecosystem shifts.
JPMorgan analysts warned that newly proposed spot Solana exchange-traded funds (ETFs) may attract only modest inflows (around $1.5 billion in their first year), citing waning on-chain engagement and investor fatigue as potential constraints.
Behind the recent push and pull in Solana's value lies renewed evidence that the Solana ecosystem continues to grow despite short-term volatility.
According to 21Shares, Solana generated roughly $2.85 billion in annual revenue from various sectors including DeFi, artificial intelligence (AI), and trading platforms, a level that reportedly outpaced Ethereum's early growth trajectory.
That kind of real yield underscores that SOL’s value is not solely speculative, but tied to usage and fees across its decentralised applications.
Still, the path forward is not without challenges. The mixed signals from ETF prospects make investor sentiment volatile.
JPMorgan’s restrained projection has raised doubts among traders who had been banking on a rout of capital into Solana’s token fund.
Simultaneously, the decline in DeFi TVL and active address growth has cast shadows on whether SOL can sustain aggressive upside unless fresh demand or regulatory clarity intervenes.
Looking ahead, whether Solana can successfully breach resistance near $250.00 or maintain momentum during choppier markets will depend on the balance between renewed institutional buying and a revival in on-chain metrics. If inflows accelerate and usage rebounds, SOL could resume its climb; otherwise, it may drift sideways or revisit lower support zones in search of renewed footing.
Solana bearish scenario:
A fall through Thursday's $216.90 low would probably but the $208.00-to-$206.00 region back on the map. Perhaps the September lows at $194.23-to-$190.96 may also be revisited.
Bearish pressure may well be maintained while there is no bullish reversal above the current October high at $237.81.
Solana bullish scenario:
A bullish reversal and rise above the 6 October high at $237.81 would likely push the September peak at $253.49 to the fore.
Solana daily candlestick chart
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