On June 19, the Federal Reserve kept its benchmark rate at 3.50%-3.75%, triggering a selloff in risk assets. Solana (SOL) fell below $71, with intraday lows testing the $70 support zone. Bitcoin also slipped to ~$64,000, while altcoins suffered steeper losses, with SOL among the hardest hit.
Fed's Hawkish Tone Dampens Risk Appetite
The Fed cited persistent inflation risks and left the door open for further tightening through 2026. SOL quickly dropped from its $75.60 peak after the announcement, with $70 emerging as a short-term defense line for bulls.
Institutional Interest Persists: Morgan Stanley Updates SOL ETF Filing
Despite weak price action, institutional demand remains intact. SOL ETF products recorded $7.11 million in net inflows last week, with $2.99 million on Thursday alone. In a notable development, Morgan Stanley submitted an amended S-1 filing with the SEC for a Solana-focused ETF under the ticker MSOL. Bloomberg analyst James Seyffart confirmed the update. SOL ETFs have now seen positive net inflows for eight consecutive months; sustained inflows in the coming days could push the monthly balance back to positive territory.
RWA Wallets Lead, Derivatives Flash Caution
On the retail side, Solana boasts over 285,000 wallet addresses holding tokenized real-world assets (RWA), ranking first among all blockchains. The surge is partly fueled by tokenized SpaceX IPO products. However, derivatives tell a more cautious story: SOL futures open interest declined to $4.85 billion from $5.18 billion earlier this week; long liquidations totaled $13.66 million in the past 24 hours, versus $1.80 million in short liquidations, indicating seller dominance. Analysts note heavy leverage clustering at $74-$76, while $65-$66 is a key liquidity zone. A daily close below $70 could open the door to $62, then possibly $60; on the upside, resistance at $74.80 and $79.30 must be breached for strength to return.