Macroeconomic uncertainty and escalating trade tensions triggered a steep drop in Solana’s price, but a potential ETF approval may restore upward momentum.
Solana Drops Below $200 in 24 Hours
On October 11, the price of SOL fell from $221.95 to $184.15 within 24 hours — a drop of more than 15% — amid mass liquidations and widespread market panic. The total crypto market cap shed over $250 billion, losing 9% and falling to $3.83 trillion.
Technical analysis shows that SOL broke below the support of its ascending channel — a bearish signal in the short term. The price is now trading below the key $200 psychological support level for investors.
Tariff Shock Triggers Sell-Off
The sharp correction wasn’t caused by blockchain issues but by political uncertainty. On October 11, President Donald Trump announced a 100% tariff on Chinese imports starting November 1. This was in response to China’s export restrictions on rare earth elements critical for chip and tech production.
Simultaneously, the U.S. also announced future limitations on software exports, raising fears of a new trade war.
The result was a wave of risk-off behavior, with Solana suffering some of the steepest losses among large-cap tokens.
ETF Approval Could Reverse the Trend
Despite geopolitical tensions, optimism remains surrounding the potential approval of a Solana ETF in the United States. New regulatory reforms easing the listing process at the SEC have raised approval expectations to near certainty, according to Block ETF Tracker.
Currently, there are only 3 active Solana ETF products, with several more pending approval. A new ETF listing would mean:
- inflow of institutional capital
- greater regulatory confidence
- increased liquidity for SOL
An ETF approval could act as a market catalyst — restoring demand and igniting an upward price correction.
Fed, Interest Rates, and Market Risks
In the short term, SOL remains under pressure. Potential interest rate cuts by the Federal Reserve later this month may lift investor sentiment, as such moves have historically encouraged investment in risk assets.
However, if trade restrictions intensify or geopolitical risks escalate, SOL’s outlook could worsen, with a possible retest of support levels near $170.
Still, holding above $185, combined with ETF progress, could signal the start of a new bullish phase.
Conclusion
Solana’s price stands at a crucial juncture — torn between global fear and institutional optimism. ETF approval in the U.S. could reverse the current trend and draw fresh capital into the asset, but short-term volatility remains dictated by geopolitical headlines.
Frequently Asked Questions
Find answers to the most common questions below.
Solana's price dropped due to a mix of macroeconomic uncertainty, mass liquidations, and panic triggered by new U.S. tariffs on Chinese imports.
It depends on your risk tolerance. Some traders see the correction as a buying opportunity, especially if the ETF approval goes through and market sentiment improves.
An ETF approval could attract institutional capital, boost liquidity, and provide regulatory legitimacy — potentially driving the price upward.
Yes. If geopolitical tensions worsen or the market reacts negatively to Fed decisions, SOL may retest lower supports around $170.
While there’s no official date, sources suggest that regulatory reforms have increased the likelihood of an approval in the coming weeks.
This article is for general informational purposes only and is not intended to be, and should not be construed as, legal or investment advice. Crypto-assets are highly volatile, so only invest funds that you are willing to lose and use your own research and risk management.
