From May 15-22, Solana saw a significant price increase, followed by a decline that has made investors uneasy. This stall hints at possible price changes soon due to strong influences from both buyers and sellers. Solana had hit a high of $187.39 in March but then pulled back.

Why is Solana’s Price Falling?

Solana’s price drop followed rumors about Ethereum's ETF approval. Bloomberg analysts increased the chances of approval from 25% to 75% based on SEC news, leading Solana’s price to fall to $163.38. For the latest in tech news, visit NEWSLINKER.

After this period, Solana's price bounced back and is now trading at $168.42, marking a 1% increase. During this time, Solana’s market cap rose to $75 billion, while its 24-hour trading volume decreased by over 50% to $2.5 billion.

The approval of the Ethereum ETF led to changes among Solana's Proof of Stake validators. Between May 20-24, a staking rush resulted in the unstaking of 3.5 million Solana tokens. These unstaked tokens are currently worth over $594 billion, leaving 365.3 million tokens still staked.

Historically, decreases in staking levels have caused temporary instability in Proof of Stake networks.

What’s Next for Solana?

Solana seems to be correcting after being overbought earlier in the week. The approval of the Ethereum ETF put selling pressure on Solana, causing its price to drop.

However, Solana’s price has been climbing since yesterday. This increase might become more significant once the uncertainty about the Ethereum ETF clears up.

Meanwhile, major investors are speculating about a possible Solana ETF, given its popularity and its position as a leading cryptocurrency after Bitcoin and Ethereum.

Analysts predict Solana might dip before potentially climbing to $216 in the future.