SOL Token Drops 10% Amid Volatility Despite $5B DeFi Boost and ETF Speculation

Solana (SOL) experienced a significant price decline of approximately 10% over the last 24 hours, with the current Binance price at $143.72, down from a 24h open of $159.70. This sharp drop follows a period of heightened volatility and appears to be a correction after recent price surges driven by speculation on a potential Solana ETF approval, increased institutional interest, and substantial DeFi developments, including a $5 billion credit line announcement for Solana-based projects. Despite bullish sentiment earlier in the week and ongoing positive news around Solana’s ecosystem growth, technical indicators now reflect a shift toward bearish momentum, with the 14-day RSI at 43.97 and a majority of recent trading days showing downward pressure. Trading volume remains robust, reported between $3.68 billion and $4.25 billion, and market capitalization stands at $75.97 billion, indicating sustained market activity even amid the price pullback. The Fear & Greed Index at 71 suggests continued speculative interest, but recent withdrawals for staking and futures contract launches have not offset the broader market’s risk-off sentiment, leading to the observed decline.