Solana Price Drops as XRP and DOGE ETFs Shift Market Sentiment

Sudden Decrease in Solana’s Value Draws Attention Towards XRP and DOGE Exchange Traded Funds (ETF)

Solana (known as SOL in the world) experienced a drop of more than 9%, sliding down to $180 following the news about the U.S. Securities and Exchange Commission’s consideration of exchange-traded funds (ETFs) for XRP and Dogecoin (referred to as DOGE). This development has prompted investors to divert their focus towards these ETF filings, which has resulted in increased selling pressure on SOL and other alternative coins that are anticipating their ETF approvals.

The data on derivatives indicates an outlook for Solana. Short positions have seen a significant increase, amounting to $400 million in bearish wagers compared to the $138 million in long positions held currently. Traders seem to anticipate movement in the market. If the selling pressure persists, SOL might drop further towards its support level at $175.

Technical signals support this perspective; SOL is currently under moving averages, and indicators like the Moving Average Convergence Divergence (MACD) and Parabolic SAR suggest selling pressure. Nonetheless, a change in market sentiment or an excessive amount of positions could lead to a rebound caused by a short squeeze.

Speculation surrounding ETFs is causing fluctuations in the cryptocurrency market’s volatility levels to rise and fall unpredictably.