In early June, **Solana** is encountering resistance, dropping 3% as it struggles near the 50-Day EMA band.
Investor activity slowed down significantly after the SEC expressed doubts about the legality of two proposed staking ETFs by REX Shares and Osprey Funds on May 30th.
This development led to a decline in derivatives data, including total SOL OI and funding rates, reflecting a short-term bearish sentiment until bullish factors come into play.
The US SEC cast uncertainty over 2 ETFs aiming to invest in **Solana** and Ethereum, raising concerns about their registration and eligibility for exchange listing.
SEC Associate Director Brent J. Fields noted unresolved questions about the funds and whether they meet the requirements of the Investment Company Act of 1940. This indicates the SEC’s discomfort with staking-based financial products entering the mainstream market.
As a result, trader activity decreased, driving the **Solana** price downwards. Its Total OI decreased from $3.20 billion to $2.87 billion, and Total funding rates dropped from +0.0033% to -0.0044%.
Despite recent uncertainties, the probability of a **Solana ETF** approval has risen above 80%, showing the market’s long-term optimism.
The **Solana** price has fallen by 18% from mid-May to $153.19 due to challenges like the SEC’s scrutiny and declining derivatives. This trend indicates a bearish momentum in the short term.
The recent rejection from the 50-day EMA on the daily chart suggests bearish pressure, with a potential drop to $140 or even $120, a strong multi-month support level.
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