Solana Faces Steep Decline: Should You Buy After a 15% Price Drop?

In the context of the cryptocurrency market sentiment turning extremely pessimistic, Solana (SOL) has just witnessed a 15% drop over the past week, lowering its price to around $193.62. Along with that, the global market with a scale of 3.12 trillion USD and a daily trading volume of 125.13 billion USD shows high volatility, as the 'Fear and Greed' index (Fear and Greed) only reaches 35 - a level indicating investors are overwhelmed with fear. The market context and its impact on major currencies The cryptocurrency market is currently witnessing a decline in major currencies. Specifically: Bitcoin (BTC): The price has slightly decreased to about $96,048 with a decrease of -1.92%. Ethereum (ETH): The situation is also not optimistic as the price drops to $2,605, or -5.61%. XRP: Despite a slight decrease of 0.72%, the price is still only about $2.40. The dominance of Bitcoin in the market has limited the recovery potential of altcoins, with the Altcoin Season Index only reaching 29/100. Technical analysis and price trends of Solana Technically, SOL is currently facing many difficulties with important resistance levels: Key resistance level: SOL price is trading below the $203 level, which is an important resistance level determined based on the current downtrend. 50-day EMA: The 50-day moving average is placed at $206.68 and is acting as a strong resistance to price increases.Important support level: A descending triangle price pattern shows an important double support level determined at $187. If SOL cannot maintain this support level, investors are concerned that the price may continue to decline deeply to the next support levels at $176 and $162, which are price areas that have previously seen stability. To change the downtrend, SOL needs to break and sustain above the $203 level. If successful, this coin could target the next price objectives at $218 and $231. Positive news from SEC: Catalyst for long-term recovery Alongside the technical pressures, there is a positive news that investors are paying attention to. The SEC has just accepted the first ETF registration based on Solana. This is seen as a significant turning point, allowing major managers such as Grayscale, Bitwise, and VanEck to submit filings through NYSE's 19b-4 registration process. Bloomberg ETF expert James Seyffart believes that this acceptance reflects a change in the SEC's stance, especially after Gary Gensler ordered the removal of records related to Solana. Analysts currently predict that the final decision on the ETF may be announced on October 11 under the new leadership of the SEC. If approved, the Solana ETF would not only increase liquidity and institutional investor acceptance, but could also be a key factor in supporting the long-term price of SOL in the market. Conclusion In the current context, Solana is facing overwhelming selling pressure, as the price remains below the $203 threshold and risks a deep decline if it cannot maintain the crucial support level at $187. Despite positive prospects from the SEC with the ETF filing, the current downtrend and market sentiment of fear are dominating. Investors need to carefully consider: If buying: Need to closely monitor the technical support levels, especially the $187 level. Any break of this support level could push the price down to the $176 and $162 areas. If waiting: Investors can wait for positive signals from the SEC and market sentiment improvement to determine the right time to enter the order. In general, although ETFs may bring new investment flows and support prices in the long term, Solana is currently in a "bear market" under selling pressure, requiring caution and careful evaluation from investors.