2026-5-21 09:46 |
Solana price has struggled to hold above $90 this month, Morgan Stanley’s proposed spot SOL ETF could offer fresh momentum for the token.
According to Coingecko data, Solana (SOL) briefly climbed to nearly $93 on May 15 before losing momentum again, with sellers repeatedly defending the $94 to $96 range that has acted as a heavy resistance zone on the daily chart.
Why is SOL price struggling?Trading activity across the Solana network has slowed compared to the frenzy seen during the memecoin boom that fueled much of the chain’s explosive growth through 2024 and early 2025.
Data from multiple on-chain trackers has shown a visible cooldown in decentralized exchange volumes and network fee generation over recent months, reducing the organic demand that previously came from users buying and locking SOL for gas fees and liquidity activity.
At the same time, Solana’s transition toward more sustainable infrastructure-driven growth has yet to fully compensate for the decline in speculative retail trading.
Developers behind the network’s upcoming Alpenglow upgrade have promoted the update as a major improvement focused on ultra-fast transaction finality and enterprise-grade performance, though adoption from those use cases could take time to materially impact demand.
Institutional sentiment also took a hit after recent 13F filings revealed that Goldman Sachs exited its exposure to Solana and XRP exchange-traded funds during the first quarter.
The disclosures arrived just as traders were attempting to push SOL back into a stronger recovery trend, adding pressure to an already fragile market environment.
Several publicly traded firms holding large Solana reserves on their balance sheets have meanwhile remained under scrutiny as SOL trades far below previous acquisition levels.
Companies including Sol Strategies and Forward Industries are sitting on sizeable unrealized losses, a factor that has raised concerns among traders about potential liquidation risks if market conditions worsen further.
Pressure across the wider crypto market has added another obstacle. Bitcoin recently slipped below $77,000 while sentiment indicators such as the Crypto Fear and Greed Index moved into fear territory.
SOL remains in demandDespite the weak price action, institutional appetite for Solana investment products has not disappeared.
Data from SoSoValue showed spot Solana ETFs continued attracting steady inflows throughout May.
The products recorded $26.6 million in net inflows on May 11, followed by another $19.1 million on May 12 and $21.3 million on May 6.
Cumulative net inflows across spot SOL ETFs have now climbed to roughly $1.1 billion, while total net assets remained close to the $1 billion level for most of the month.
Morgan Stanley’s amended S-1 filing for its proposed spot Solana ETF, which would trade under the ticker MSOL, has also introduced a fresh bullish narrative around the asset.
In its revised filing, Morgan Stanley identified Coinbase Custody and BNY Mellon as key service providers while expanding details around how the fund would operate.
Because Morgan Stanley oversees trillions of dollars in client assets, approval of the proposed ETF could potentially open access to new pools of institutional capital ranging from retirement portfolios to corporate treasury allocations.
Another detail attracting attention is the fund’s proposed staking structure.
Unlike earlier crypto ETFs that simply track spot prices, the filing states that the trust could stake up to 100% of its Solana holdings through third-party staking providers.
Analysts following the proposal said the mechanism could turn the ETF into a yield-generating investment product while simultaneously reducing the liquid SOL supply available on the open market.
If large quantities of tokens become locked through institutional staking activity, the resulting supply compression could help absorb overhead selling pressure that has repeatedly capped SOL in recent weeks.
SOL price analysisOn the daily chart, Solana continues trading below its key long-term moving averages despite recent attempts to stabilize near the mid-$80 region.
SOL/USD 1-D price chart. Source: TradingView.
The 20-day exponential moving average currently sits near $87.82, while the 50-day EMA is positioned around $87.66.
SOL has been fluctuating around those levels throughout May, showing that buyers and sellers remain locked in a short-term battle for trend control.
Further overhead resistance appears near the 100-day EMA around $92.85, which aligns closely with the rejection zone near $93 seen earlier this month.
Above that, the 200-day EMA near $109.36 remains the major macro resistance level bulls would need to reclaim before any larger trend reversal gains credibility.
Volume patterns on the chart suggest buying activity has improved modestly since the sharp February decline, although conviction remains limited.
On Balance Volume, or OBV, has gradually recovered from recent lows and currently sits near 59.67 million, indicating accumulation pressure has started improving even while price action remains compressed below resistance.
Recent candles also show SOL attempting to build a higher base after months of lower lows, though the token has not yet produced a decisive breakout structure on the daily timeframe.
For now, sustained closes above the $90 to $93 area would likely be needed to confirm renewed bullish momentum.
Failure to reclaim that range could leave SOL vulnerable to another retest of support zones closer to the low-$80 region if macro market conditions deteriorate again.
The post Could Morgan Stanley’s Solana ETF bid revive SOL price momentum? appeared first on Invezz
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