Solana drops below $71 as Fed holds rates steady

Solana (SOL) saw a sharp pullback after reaching $75.60 on June 15, dropping to $70.70 in intraday trading on June 18 before finding temporary support near $71. This decline follows a more than 20% rebound from the early June low of $62 and comes amid shifting market sentiment.

Fed decision and market pressure

The selling pressure intensified after the US Federal Reserve kept interest rates unchanged in the 3.50% to 3.75% range. The Fed delivered cautious signals, emphasizing continued inflation risks and leaving the door open for further tightening through 2026. This stance led investors to shy away from volatile assets like cryptocurrencies.

During this period, Bitcoin also fell to around $64,000. The broader crypto market saw many leading altcoins suffering steeper losses than Bitcoin, with Solana’s decline standing out as part of this wider risk-off sentiment.

ETF filings and institutional interest

Despite Solana’s price weakness, institutional interest has not vanished. On Thursday, SOL-based ETF products saw $2.99 million in inflows, bringing the weekly total net inflow to $7.11 million.

Morgan Stanley submitted an updated S-1 filing to the US Securities and Exchange Commission for a Solana-focused exchange-traded fund. The product, planned to trade under the ticker MSOL, reflects a flurry of recent institutional moves centered on Solana. Morgan Stanley is regarded as a leading global investment bank and asset management company.

SOL ETF products have registered positive net inflows for eight consecutive months, signaling resilient institutional demand. Continued inflows in the coming days could return the monthly balance to positive territory.

RWA metrics strong, caution in derivatives

On the retail front, Solana now leads all blockchains by number of wallets holding tokenized real-world assets, surpassing 285,000 users. The recent surge is partly attributed to the popularity of tokenized SpaceX IPO products.

Glossary: Real-world assets refer to traditional financial products like stocks, bonds, or private market instruments being digitally represented on the blockchain, allowing fractional ownership and easier trading.

However, derivatives data paints a more cautious picture. Open interest in SOL futures slipped from $5.18 billion on Wednesday to $4.85 billion by Friday. Over the past 24 hours, $13.66 million in long positions were liquidated, while short liquidations totaled $1.80 million, indicating sellers remain dominant in the short term.

Analysts note that significant leveraged positions are clustered between $74 and $76, while the $65–66 range represents a key liquidity zone. The $70 mark stands as the main support in the near term; a daily close below this level could send SOL first towards $62, then possibly down to $60. For upward momentum to strengthen, resistance levels at $74.80 and $79.30 need to be breached.

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