Solana (SOL) Total Value Locked (TVL) recently hit $9.90 billion, the lowest level since November 2024, before recovering slightly to $10.3 billion. Despite this bounce, SOL’s TVL remains down nearly 30% from January 18, reflecting ongoing concerns about its ecosystem.

SOL’s price is also under pressure, down more than 8% in the last seven days and over 31% in the past 30 days. Technical indicators are showing signs of recovery, but bearish trends are still dominant, with SOL trading below key resistance levels.

Solana TVL Reached Its Lowest Levels Since November 2024

Solana’s Total Value Locked (TVL) is currently at $10.3 billion, recovering from a low of $9.90 billion on February 17, the lowest level since November 14, 2024. Despite this rebound, TVL is still down nearly 30% from $14.2 billion on January 18, reflecting decreased investor confidence.

This decline coincides with controversies surrounding Solana ecosystem, including accusations of being too extractive and criticism over the launch of the meme coin LIBRA, which has contributed to the outflow of capital.

Tracking TVL is important because it shows the total capital locked in a blockchain’s DeFi ecosystem, indicating liquidity and investor confidence. Although Solana’s TVL has recovered slightly, the sharp drop over the past month highlights ongoing concerns.

If these issues aren’t addressed, continued capital outflows could pressure SOL’s price and slow its recovery. Conversely, if confidence is restored, a rising TVL could signal renewed interest and support for SOL.

Solana Indicators Are Still Bearish But Recovering

Solana’s Ichimoku Cloud chart shows that the price is currently below the red cloud, indicating that the bearish trend is still dominant. However, the price is now trading above the blue Tenkan-sen (conversion line) and the orange Kijun-sen (base line), suggesting that bearish momentum is weakening.

This could indicate a potential short-term recovery as buyers are starting to gain some control. Nevertheless, the thick red cloud overhead acts as a strong resistance, which Solana would need to break through to confirm a bullish reversal.

In this case, the fact that Solana remains under the red cloud suggests that the overall downtrend is not yet reversed.

However, if the price can break above the cloud, it would be a strong bullish signal. Conversely, failure to break the resistance could lead to renewed selling pressure, continuing the bearish trend.

Solana’s Directional Movement Index (DMI) chart shows that its Average Directional Index (ADX) is currently at 25.4, down from 43 just two days ago when SOL’s price dropped to around $165.

This decline in ADX indicates that the strength of the downtrend is weakening, although the trend itself is still present. An ADX above 25 typically signals a strong trend, but the decreasing value suggests that bearish momentum is losing power. This could potentially lead to a consolidation phase.

Meanwhile, the +DI is at 18.4, rising from 5.4 three days ago, while the -DI is at 14.8, dropping from 39.2 over the same period. This shift shows that buying pressure is gradually increasing as selling pressure declines. If +DI continues to rise above -DI, it could indicate a potential trend reversal.

However, since SOL is still in a downtrend, it would need sustained buying momentum to break the bearish pattern. If +DI fails to maintain its upward movement, the downtrend could resume.

Solana Can Reclaim $200 Levels If The Downtrend Is Reverted

Solana’s Exponential Moving Average (EMA) lines still indicate a bearish trend, as the short-term EMAs are below the long-term ones. However, the direction of these lines has started to shift slightly since yesterday, with Solana price rising by 4%.

This suggests that selling pressure is weakening and that buying interest is gradually returning. If this momentum continues, it could lead to a trend reversal. However, that would require the short-term EMAs to cross above the long-term ones.

If SOL can fully reverse the current downtrend, it could first test the resistance at $183. A successful break above this level would signal a stronger bullish momentum, potentially pushing the price to the next resistance at $197.

If buying pressure continues to build, SOL price could even target $220, representing a significant recovery.

Conversely, if the downtrend persists and selling pressure intensifies, SOL could retest the support at $159.

A break below this level would indicate a continuation of the bearish trend. That would possibly lead to a drop towards $147, its lowest level since October 2024.

The SEC has ended its investigation into OpenSea. The commission announced that it would not take legal action, asserting that NFTs are securities. 

The leading NFT marketplace has been notified that no enforcement actions will be taken. This marks the second legal action the SEC has dropped against crypto platforms on Friday. 

SEC Will No Longer Probe OpenSea

OpenSea’s co-founder and CEO, Devin Finzer, called the decision a win for the NFT and web3 community. He stated that the SEC misinterpreted current laws regarding NFTs, a mistake that could have slowed progress in the sector.

“This is a win for everyone who is creating and building in our space. Trying to classify NFTs as securities would have been a step backward—one that misinterprets the law and slows innovation. Every creator, big or small, should be able to build freely without unnecessary barriers,” wrote Finzer. 

This outcome follows a Wells notice that OpenSea received last August. The notice indicated that the SEC planned to initiate legal action, arguing that some or all NFTs traded on the platform might be securities. 

OpenSea set aside $5 million to support NFT artists and developers who could face similar actions. However, this fund will no longer be required for this purpose.

Meanwhile, the SEC’s decision is a major relief for the NFT marketplace, as OpenSea is preparing to launch its token in 2025. 

Considering that other competitors had already entered the crypto market early, a regulatory probe could have been further damaging for OpenSea. 

Most notably, this is the second legal dismissal announced by the SEC today, on February 21. Earlier in the morning, the Commission announced plans to dismiss its lawsuit against Coinbase. 

The crypto exchange reported that SEC staff agreed in principle to drop the case, pending the commissioners’ final approval.

Overall, the SEC is seemingly scaling back crypto enforcement at a rapid pace. However, its biggest legal action, the Ripple lawsuit, still remains active. 

Franklin Templeton filed to create a Solana ETF with staking options today. Earlier this month, it filed for a Solana Trust, and today’s proposal builds on that initial effort.

Presently, any ETF staking activity under this proposal would fall entirely under Franklin Templeton’s proposal. Nevertheless, previous industry efforts to establish a staking ETF in 2024 were withdrawn en masse, but this new attempt is determined.

Will the SEC Approve a Solana ETF?

Since President Trump took office in January, approval for a Solana ETF seems increasingly likely. The SEC has acknowledged a stretch of relevant applications in quick succession, and most Polymarket users think that approval in 2025 is very likely.

However, Franklin Templeton is going one step further, attempting to create a Solana ETF with staking.

“The Sponsor may, from time to time, stake a portion of the Fund’s assets through one or more trusted staking providers, which may include an affiliate of the Sponsor (“Staking Providers”). In consideration for any staking activity in which the Fund may engage, the Fund would receive certain staking rewards of Solana tokens, which may be treated as income,” the SEC filing reads.

To be clear, the “Sponsor” in the brief refers to Franklin Templeton itself, and it would have total control over the staking process and rewards. Although this process is apparently in no way decentralized, it still is a novel proposal in the ETF space.

Franklin Templeton also filed for a Solana Trust in February, and today’s ETF builds on this earlier application. Last year, several issuers attempted to create a staking Ethereum ETF, but all these proposals were withdrawn.

Nonetheless, political conditions are very different in 2025.

First of all, the SEC’s Crypto Task Force consulted industry leaders about ETP staking a week ago. These discussions were more general than a staking ETF specifically, but the Task Force has continued dialogues with other crypto firms.

Additionally, Task Force leader Hester Peirce requested more feedback from the crypto industry earlier today.

If Franklin Templeton is able to create a Solana staking ETF, it could cause a real boost to the underlying asset. SOL has experienced a difficult month, and there are few immediate signs of a price recovery.

Ultimately, however, there’s no real proof that the Commission will play ball with this request. The Task Force’s recent meeting only concerned ETP staking, and it’s the most bullish signal for Franklin Templeton.