Why is Solana down in August 2025?
- Ava Tar
- Aug 2
- 3 min read
Solana’s 3.4% 24-hour drop reflects ETF outflows, whale selling, and a risk-off shift in crypto markets.
1. $1B+ ETF outflows drove sector-wide selling pressure
2. Whales dumped $17.7M SOL amid macro uncertainty
3. Technical breakdown below key moving averages accelerated losses
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Deep Dive
1. Primary Catalyst
Institutional flight from crypto ETFs triggered cross-asset selling:
- U.S. spot Bitcoin/ETH ETFs saw $1B outflows on August 2 ([The Block](https://www.theblock.co/post/365325))
- Solana ETF applicants amended filings this week, but progress remains uncertain
- TradFi outflows correlate with SOL’s underperformance (-13.7% weekly vs BTC’s -3.9%)
2. Supporting Factors
Whale activity and macro risks compounded selling pressure:
- Address KMhcqN moved 108,016 SOL ($17.7M) to exchanges ([CryptoNewsLand](https://cryptonewsland.com/arthur-hayes-exits-risk-sells-13m-in-crypto-a/))
- Arthur Hayes’ $13M crypto exit cited Trump’s tariffs and credit contraction fears
- Fed rate cut odds rose to 70%, but crypto remains risk-off with $613M liquidations
3. Technical Context
Bearish momentum confirmed across multiple indicators:
- Price broke below 30-day SMA ($170.98) and 7-day EMA ($175.86)
- MACD histogram at -3.13 signals accelerating downside momentum
- RSI (14) at 41.97 shows room for further declines before oversold
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Conclusion
SOL’s drop reflects a perfect storm of ETF-driven institutional exits, whale deleveraging, and technical breakdowns which were all magnified by August’s thin liquidity. While RWA growth (+200% YTD) and the $10M DevvStream allocation offer long-term support, traders are pricing short-term risks aggressively.
Will SOL’s $158 Fibonacci support hold if BTC retests $100K?
This article is for entertainment purposes only and should not be considered trading nor financial advice.
CMC AI can make mistakes, please DYOR. Not financial advice.
Sources:
CMC Community Post by @cryptomanmab
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