Would you dare buy $SOL at $89.15?
The SEC and CFTC just gave it a "good citizen" status as a digital commodity, the stablecoin supply hit a record high of 17 billion, and it's among the 400,000 companies that use USDC to pay salaries in Gusto—but what about the price? It plummeted from $94.50 to $88.95, a drop of 5.87%. The RSI just climbed from 33.20 to 47.27, like a half-dead person who barely caught their breath before being pushed back down. Investors are in an uproar: with so much good news, why isn't it rising? Should they run away?
On the surface: a mountain of positive news, yet the price remains rock solid.
In the past 24 hours, the price of SOL fluctuated by 0.73%, from $88.50 to $89.15, an increase of less than one dollar. But don't get too excited—the candlestick chart tells you it just plummeted from a high of 90.45, the MACD crossed below the zero line, the moving averages are in a bearish alignment, the KDJ has formed a death cross, and all technical indicators are screaming the same thing: further short-term declines are expected.
First thing: Regulators have given their approval, and institutions are coming.
The SEC and CFTC, two of the toughest regulatory bodies in the US, have jointly issued SOL "digital commodity" status. What does this mean? It means that institutions previously dared not touch SOL because they feared it was a security and would be subject to fines. Now the path is paved, and the door to compliance is open.
Second thing: The ecosystem is thriving, and money is flowing in.
Solana's stablecoin supply has surpassed $17 billion, setting a new record. Gusto, a giant serving 400,000 companies, has started paying salaries in Solana's USDC. This isn't some "promising future" ghost story; this is real money flowing on the blockchain right now.
Third thing: Technical indicators are conflicting, but someone is secretly accumulating.
OBV has broken through previous highs, indicating increasing buying power. The RSI has formed a double bottom, suggesting a potential rebound after oversold conditions. Trading volume remains, indicating market activity hasn't dissipated.
On one hand, regulators have given their approval, the ecosystem is thriving, and valuations are undervalued by 42%.
On the other hand, ETFs are experiencing outflows, DApp revenue is collapsing, and the technical charts show a bearish alignment.
The key level is 87.00; this is the final line of defense for both bulls and bears.
If you are a short-term trader: wait for a volume-driven rebound near 87.00 before entering, targeting 91.41 to 93. Stop loss decisively if it breaks below 87, with the next target at 85. Don't hold on, don't be greedy, and exit immediately if it breaks down.
If you are a long-term trader: start with a small position now, building in batches around 87.50. Add to your position if it falls to 85, and further increase it if it rises back to 90. The regulators have already revealed their hand; institutional money will come sooner or later, so why the rush?
