The month of June has just begun, and the Solana price is struggling near a resistance zone, and in the intraday session, it bled 3%, facing rejection from the 50-Day EMA band.
The bearishness intensified when on May 30th SEC raised shocking concerns over the legality of two proposed staking ETFs from a firm known as REX Shares and Osprey Funds.
This shock halted investors’ activity, and even derivatives data had seen a decline, including total SOL OI and funding rates. The growing pessimism indicates that the market in the short term is headed south until bullish forces intervene.
SEC Put Question Mark On REX Shares and Osprey Funds
The US SEC on Friday, May 30th, said that 2 ETFs have been filed for a “staking ETF” that would allocate capital to Solana and Ethereum. As the recent SEC move raised concerns over their registration and potential eligibility for listing on the exchange.
SEC Associate Director Brent J. Fields highlighted that for the fund, the Commission still has “unresolved questions”. He added that the SEC is worried whether the products would qualify as legitimate investment companies under the Investment Company Act of 1940. This shows that the SEC’s response indicates their ongoing discomfort with the staking-based financial instruments entering the mainstream markets.
As a result, the trader’s activity has declined, pushing the Solana price southwards. The SEC’s worries have echoed in the market, which has affected SOL negatively; its “Total OI in USD” has declined to $2.87 billion from $3.20 billion, and “Total funding rates” have declined to “-0.0044%” from “+0.0033%”.
However, Despite the recent uncertainty observed, Polymarket, odds of a Solana ETF being approved have climbed over 80%, which clearly signifies the long-term tone of the market remains optimistic.
What To Expect From Solana Price In June?
The Solana price has taken an 18% hit from mid-May to when writing at $153.19 from $187.19. The ongoing challenges like the SEC’s recent scrutiny, and its derivatives falling, show that it is aiming southwards momentum in the short term.
The recent rejection on the daily chart from the 50-day EMA is evident that bears are active and pushing for downside momentum. Losing the $150 nearest round number support could lead to a drop to $140 and even $120, which is multi-month strong support.
