On Tuesday, the US Securities and Exchange Commission (SEC) postponed its decision on multiple altcoin exchange-traded funds (ETFs), including Solana’s.

This development has further dampened investor sentiment toward SOL, which has continued to witness significant spot market outflows.

Solana Investors Exit Amid SEC Delay—$16 Million Pulled Under 24 Hours

In a series of filings made on March 11, the SEC announced its plans to postpone its decision on multiple ETFs tied to major assets, one of which is SOL. According to the regulator, it has “designated a longer period” to review the proposed rule changes that would enable the ETFs to become operational.

This has exacerbated the bearish sentiment toward SOL, which is reflected in the capital outflows from its spot markets over the past 24 hours. As of this writing, $16.43 million has been removed from the market, marking the seventh day of consecutive outflows, which have now exceeded $250 million.

When an asset experiences spot outflows like this, its investors are selling their holdings. This trend reflects a lack of confidence in SOL’s short-term price recovery, with traders choosing to cash in their accrued gains to prevent further losses on investments.

Furthermore, SOL’s Moving Average Convergence Divergence (MACD) indicator, observed on a daily chart, supports this bearish outlook. As of this writing, the coin’s MACD line (blue) is below its signal line (orange). 

An asset’s MACD measures its price trends and momentum shifts and identifies potential buy or sell signals based on the crossing of the MACD line, signal line, and changes in the histogram. 

When the MACD line rests under the signal line, the market is in a bearish trend. This indicates that SOL selloffs exceed buying activity among market participants, hinting at a further value drop.

Solana at Crossroads: Will SOL Hold $126 or Fall to $110?

SOL trades at $126.82 at press time. With waning buying pressure, it risks falling to $110, a low that it last reached in August 2024. 

However, a strong resurgence in buying activity would prevent this. For this to happen, SOL has to establish a strong support flow at $135.22. If successful, it could propel its price to trade at $138.84 and above. 

In an interview with BeInCrypto, Johnny Garcia, Managing Director of Institutional Growth and Capital Markets at VeChain Foundation, addressed the rejection of Bitcoin (BTC) reserve bills. He emphasized that the core issue goes beyond legislative resistance—highlighting the need for greater education for both the public and policymakers. 

His remarks come as five states have already dismissed the legislation. As of now, only 18 states are still considering the possibility of integrating digital assets like Bitcoin into their financial systems.

VeChain’s Executive Weighs In on Bitcoin Reserve Bill Rejections

Garcia pointed out that establishing federal or state Bitcoin reserves could drive innovation by modernizing investment frameworks and enhancing operational capabilities. 

“This would bring all the benefits we in crypto are quite familiar with: transparency, immediate settlement, managing counterparty risks—to name a few,” Garcia told BeInCrypto.

Yet, he acknowledged that skepticism persists. Garcia noted that many are still unconvinced about a Bitcoin reserve’s utility and economic sense. The debate becomes even more complex when considering funding sources. 

“Not every citizen in a given state will agree with their taxes financing crypto purchases—something they could just do themselves,” he commented.

Thus, Garcia emphasized that states would need to focus on educating their citizens about the purpose and objectives of including Bitcoin in their reserve portfolios. He stressed that while regulatory frameworks are crucial, success hinges on demonstrating real-world value beyond speculation.

“The blockchain/DeFi industry needs to step up and show that it can deliver proven solutions that go beyond speculative investment and offer real-world value,” Garcia remarked 

He added that to truly change the minds of political and governmental stakeholders, especially those who are instinctively skeptical of crypto, the solutions must extend beyond financial considerations. The exec emphasized that blockchain technology needs to demonstrate its ability to address a broader range of problems.

Garcia highlighted VeChain as a prime example of how blockchain can tackle both new and ongoing issues. He drew attention to VeChain’s use of blockchain to verify sustainability efforts. Garcia noted that such applications make it harder for lawmakers to ignore the technology’s real-world value beyond finance.

Cryptocurrency Reserve Bill Rejections Don’t Represent a Unified View on Crypto

Meanwhile, Garcia cautioned against viewing the rejections at the state level as blanket opposition to cryptocurrency. 

“I wouldn’t say this necessarily reflects deeply ingrained opposition to the concept of crypto in the form of reserves, stockpile, or just another alternative investment option,” he shared with BeInCrypto.

According to Bitcoin Laws, a total of 33 Bitcoin reserve bills were introduced in 23 states. However, Montana, Wyoming, North Dakota, Mississippi, and Pennsylvania have rejected the legislation that would have allowed state investments in digital assets, including Bitcoin.

Currently, there are 27 active bills in 18 states. Importantly, Utah, which was once at the forefront of the Bitcoin reserve race, recently dropped out on a technicality. The Utah bill is still progressing but without the ‘Bitcoin Reserve’ provisions, which have been removed.

Garcia offered a more nuanced view of the legislative resistance. According to him, although several states have voted against reserve bills, the opposition often comes by small margins.

He encouraged assessing the specific reasons behind the rejections rather than generalizing. Gracia also welcomed that states are taking the time to consider the issue carefully.

As states navigate their own approaches to cryptocurrency, momentum is growing at the national level. Senator Lummis has reintroduced the BITCOIN Act. This came shortly after former President Trump signed an executive order to create a strategic Bitcoin reserve funded with seized Bitcoins.

Originally introduced in July 2024, Lummis’ BITCOIN Act failed to pass out of Committee in the Senate.

“I am proud to reintroduce landmark legislation that will codify President Trump’s bold vision to establish the United States Strategic Bitcoin Reserve and strengthening our nation’s economic foundation for generations to come,” Lummis wrote on X.

The bill aims to create a US Strategic Bitcoin Reserve, backed by up to 1 million BTC acquired over five years. Moreover, the holdings would be maintained for at least 20 years.

Ethereum (ETH) has seen a significant decline in price, falling from $2,800 to around $1,900 in recent weeks. This drop has triggered a major bearish signal, the first of its kind in two years. 

However, the current price action may also suggest that recovery could be on the horizon.

Ethereum Has A Shot At Recovery

Ethereum’s price recently fell below the Realized Price for the first time in two years, a development that has sparked concern among some investors. This drop has caused the Market Value to Realized Value (MVRV) ratio to decline, indicating that investors are facing approximately 7% losses. 

While this may appear bearish at first glance, it actually presents a potential bullish signal. The previous time Ethereum faced this situation, the altcoin rebounded strongly, and the MVRV ratio improved as the price recovered. This pattern has given some market participants hope that the current situation may lead to a similar recovery.

On the macro level, Ethereum’s overall momentum is showing signs of improvement despite the recent downturn. The Exchange Net Position Change, which tracks the flow of ETH into and out of exchanges, has been declining. 

This indicates that investors are accumulating Ethereum rather than selling it, which is a positive sign. Investors see the current low prices as an opportunity to buy, anticipating a future price increase.

This shift in investor behavior is reflected in the purchase of 138,000 ETH worth approximately $262 million this week. The inflow of capital into Ethereum supports the idea that many investors are positioning themselves for a rebound.

ETH Price Eyes A Rally

Ethereum is currently trading at $1,897, down 32% over the last two weeks. The altcoin is holding above the support level of $1,862, which could act as a foundation for a potential bounceback. If Ethereum maintains this level, it may find its way to higher prices in the coming weeks.

For Ethereum to confirm a recovery, it must breach and flip $2,141 into support. This level is critical for ETH to move toward $2,344 and secure a more sustained upward movement. The factors discussed, including the RSI recovery and investor accumulation, are likely to contribute to Ethereum’s ability to reach this target.

However, if broader market conditions worsen, Ethereum could fall below the $1,862 support, pushing the price to $1,745 or even $1,625. A drop to these levels would invalidate the bullish outlook and suggest further downside potential.