Massive Whale Shift and ETF Delay Send Solana Investors Into Panic Mode

Solana (SOL) is under renewed pressure after a major on-chain whale transaction and fresh regulatory setbacks triggered widespread concern among investors. The shift comes as SOL continues to slide following a previously bullish market phase.

According to Onchain Lens, a large whale swapped 77,160 SOL—worth roughly $11.42 million—for 63,758.63 JitoSOL, a liquid staking derivative. Although the relocation does not indicate a market withdrawal, it implies a defensive position by high-value holders.

Switching to investment in yieldable assets usually means that, in the short term, illusions of capital gain are not achieved.

It was coupled with increased regulatory uncertainty as the United States Securities and Exchange Commission postponed the judgment on the spot Solana ETF application launched by Franklin Templeton.

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The following potential review will take place only in November 2025. SEC noted that the delay is procedural, although the lengthy duration has created suspicion about the rate at which regulatory developments of non-Bitcoin crypto ETFs will happen.

Whilst Canada passed a SOL ETF earlier in May, and despite VanEck product VSOL now featuring on the DTCC list, U.S. regulatory clarity remains out of reach. The most recent CoinShares product, a Solana ETF in the U.S., was also filed not without reason, as until regulators take firm steps, institutional desire might not be high.

Technical Indicators Show Growing Downside Risk for Solana

This combination of large-scale token repositioning and ETF uncertainty has heightened short-term bearish sentiment. Technical indicators have reinforced the caution. The Relative Strength Index is now at 43.52, below the neutral 50 mark, showing reduced buying strength.

Also, the MACD line is under the signal line, which is a sign of a continuous desire to move down. The price has dropped under the critical Fibonacci level of 147.86 and is resting above 142.13. In the event that the bearish force continues, the price may depreciate to the 1.618 Fibonacci extension and fall to the 125.52 marker.

Any additional decline could result in SOL reaching the $98.64 area, although it would likely require macro-market adjustments or additional regulatory setbacks. For now, market watchers remain on high alert as the warning signs mount.

Solana’s recent whale activity and regulatory delays have shaken investor confidence. With technical signals flashing red, short-term caution continues to dominate market sentiment.

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