{"id":53545,"date":"2025-06-02T15:50:01","date_gmt":"2025-06-02T15:50:01","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/solana-price-falls-18-in-may-as-sec-scrutiny-cuts-open-interest-by-330m\/"},"modified":"2025-06-02T15:50:01","modified_gmt":"2025-06-02T15:50:01","slug":"solana-price-falls-18-in-may-as-sec-scrutiny-cuts-open-interest-by-330m","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/solana-price-falls-18-in-may-as-sec-scrutiny-cuts-open-interest-by-330m\/","title":{"rendered":"Solana price falls 18% in May as SEC scrutiny cuts open interest by $330M"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div data-site=\"CoinJournal\">\n<div class=\"-mt-16  mb-8  lg:-mt-20  rounded-md  shadow-md\">\n<div class=\"relative  z-10  post-article-image  rounded  overflow-hidden\" data-site=\"CoinJournal\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/06\/image3-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/06\/image3-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/06\/image3-smartcrop-750x375.png\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/06\/image3-smartcrop-363x181.png\" type=\"image\/jpeg\"\/>\n<\/picture>                            <\/div>\n<\/p><\/div>\n<ul>\n<li>Open interest in SOL derivatives falls from $3.20B to $2.87B.<\/li>\n<li>Price faces resistance at 50-day EMA, $150 is key support.<\/li>\n<li>Polymarket shows 80% odds of Solana ETF approval.<\/li>\n<\/ul>\n<p data-start=\"145\" data-end=\"699\">Solana is under pressure as June begins, with its price down 18% over the past three weeks.<\/p>\n<p data-start=\"145\" data-end=\"699\">The latest trigger came on 30 May, when the US Securities and Exchange Commission (SEC) raised concerns over two proposed staking exchange-traded funds (ETFs) involving Solana and Ethereum.<\/p>\n<p data-start=\"145\" data-end=\"699\">The agency\u2019s reaction sent a chill through the derivatives market, with total open interest (OI) in Solana futures dropping from $3.20 billion to $2.87 billion.<\/p>\n<p data-start=\"145\" data-end=\"699\">The funding rate also slipped into negative territory, indicating declining confidence among perpetual traders.<\/p>\n<p data-start=\"701\" data-end=\"1164\">The ETFs in question were proposed by REX Shares and Osprey Funds.<\/p>\n<p data-start=\"701\" data-end=\"1164\">While details of their structures were not fully disclosed, they aimed to provide exposure to staking-based returns through a regulated vehicle.<\/p>\n<p data-start=\"701\" data-end=\"1164\">However, the SEC flagged \u201cunresolved questions\u201d around whether these funds qualify as legitimate investment companies under the Investment Company Act of 1940. The comment came via a filing attributed to Brent J. Fields, Associate Director at the SEC.<\/p>\n<h2 data-start=\"1166\" data-end=\"1219\">Solana faces resistance as bearish momentum builds<\/h2>\n<p data-start=\"1221\" data-end=\"1645\">Solana was already showing signs of weakness before the SEC announcement.<\/p>\n<p data-start=\"1221\" data-end=\"1645\">The token faced consistent resistance near the 50-day exponential moving average (EMA), with prices unable to break past the $160\u2013$170 range throughout the second half of May.<\/p>\n<p data-start=\"1221\" data-end=\"1645\">After hitting a high of $187.19 on 20 May, Solana reversed course and fell to $152.83 by the start of June.<\/p>\n<p data-start=\"1221\" data-end=\"1645\">On the intraday chart, SOL dropped by 3% as bears gained momentum.<\/p>\n<figure id=\"attachment_312741\" aria-describedby=\"caption-attachment-312741\" class=\"wp-caption alignnone\"><img loading=\"lazy\" fetchpriority=\"high\" decoding=\"async\" data-source=\"CoinJournal\" class=\"size-full wp-image-312741\" src=\"https:\/\/coinjournal.net\/wp-content\/uploads\/2025\/06\/Solana.jpg\" alt=\"Solana price\" width=\"1522\" height=\"588\"\/><figcaption id=\"caption-attachment-312741\" class=\"wp-caption-text\">Source: <a href=\"https:\/\/coinmarketcap.com\/currencies\/solana\/\">CoinMarketCap<\/a><\/figcaption><\/figure>\n<p data-start=\"1647\" data-end=\"1936\">Technical indicators point to further downside risk. The rejection from the 50-day EMA band has confirmed bearish control, with traders eyeing key support zones at $150, $140, and $120.<\/p>\n<p data-start=\"1647\" data-end=\"1936\">A sustained break below $150 could see SOL testing its multi-month support levels last seen in Q1 2024.<\/p>\n<p data-start=\"1938\" data-end=\"2318\">The derivatives data mirrors this sentiment. Funding rates, which reflect the cost of holding long positions in perpetual futures, turned negative at -0.0044%, down from +0.0033%.<\/p>\n<p data-start=\"1938\" data-end=\"2318\">Meanwhile, open interest\u2014a measure of market activity\u2014fell by over 10% within a week.<\/p>\n<p data-start=\"1938\" data-end=\"2318\">These changes show that leverage traders are unwinding their long positions amid increased regulatory uncertainty.<\/p>\n<h2 data-start=\"2320\" data-end=\"2375\">SEC staking ETF probe deepens regulatory uncertainty<\/h2>\n<p data-start=\"2377\" data-end=\"2765\">The SEC\u2019s concerns surrounding staking-based ETFs reflect a broader unease with crypto-native financial instruments entering traditional markets.<\/p>\n<p data-start=\"2377\" data-end=\"2765\">Although Ethereum futures ETFs have been approved in the past, no product has yet offered returns tied to staking rewards.<\/p>\n<p data-start=\"2377\" data-end=\"2765\">Solana, in particular, poses additional risks due to its more centralised validator set and history of network outages.<\/p>\n<p data-start=\"2767\" data-end=\"3203\">By raising objections now, the SEC may be signalling a tougher stance on newer ETF proposals, especially those involving yield-generating protocols.<\/p>\n<p data-start=\"2767\" data-end=\"3203\">For Solana, this creates additional headwinds, as any delay or rejection of staking ETFs could limit mainstream adoption and capital inflow.<\/p>\n<p data-start=\"2767\" data-end=\"3203\">Traders and analysts have also pointed to the lack of clarity on whether Solana is a security or commodity, a debate that has lingered since 2022.<\/p>\n<p data-start=\"3205\" data-end=\"3533\">Despite these short-term roadblocks, the longer-term sentiment appears more positive.<\/p>\n<p data-start=\"3205\" data-end=\"3533\">On prediction market platform Polymarket, odds of a Solana ETF approval have climbed to over 80%, suggesting that investors still see eventual regulatory clearance as likely.<\/p>\n<p data-start=\"3205\" data-end=\"3533\">However, the timing and scope of such an approval remain uncertain.<\/p>\n<h2 data-start=\"3535\" data-end=\"3588\">Solana\u2019s June outlook hinges on key support levels<\/h2>\n<p data-start=\"3590\" data-end=\"3978\">With SOL trading below its 50-day EMA and investor appetite dwindling in the derivatives space, much now depends on how the market reacts at key support levels.<\/p>\n<p data-start=\"3590\" data-end=\"3978\">A firm defence of the $150 mark could set the stage for a rebound later in the month, especially if broader crypto sentiment improves.<\/p>\n<p data-start=\"3590\" data-end=\"3978\">Conversely, failure to hold $150 may lead to further capitulation towards $140 or even $120.<\/p>\n<p data-start=\"3980\" data-end=\"4333\">While some on-chain data shows consistent activity within the Solana ecosystem, including growth in decentralised applications and daily transaction counts, price action remains largely dictated by macro and regulatory forces.<\/p>\n<p data-start=\"3980\" data-end=\"4333\">The SEC\u2019s latest comments have injected a fresh dose of uncertainty, and for now, market participants appear to be de-risking.<\/p>\n<p data-start=\"4335\" data-end=\"4584\">As Solana enters June on a cautious note, its short-term trajectory will likely depend on two fronts\u2014clarity from regulators and a return of speculative interest in high-beta altcoins. Until then, the path of least resistance appears to be downward.<\/p>\n<div class=\"ad-banner  container  pt-1\" data-partner=\"bitcoinpepe\">\n        <a href=\"https:\/\/bitcoinpepe.co\/en?utm_source=coinjournal&amp;utm_medium=banner&amp;utm_campaign=header\" target=\"_blank\" rel=\"nofollow sponsored noopener\"><br \/>\n            <img src=\"https:\/\/coinjournal.net\/wp-content\/themes\/c1-base\/dist\/img\/ad\/blockovate\/en-2.png\"\/><br \/>\n        <\/a>\n    <\/div>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/solana-price-falls-18-in-may-as-sec-scrutiny-cuts-open-interest-by-330m\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) Open interest in SOL derivatives falls from $3.20B to $2.87B. Price faces resistance at 50-day EMA, $150 is key support. Polymarket shows 80% odds of Solana ETF approval. Solana is under pressure as June begins, with its price down 18% over [&hellip;]<\/p>\n","protected":false},"author":3947362361,"featured_media":53546,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/53545"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362361"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=53545"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/53545\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/53546"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=53545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=53545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=53545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}