Solana is down: key price triggers and analysis

• Whale activity has increased: Galaxy Digital and FTX transfer nearly $91M in SOL to exchanges.
• Delays in the US SEC’s final ruling on Solana spot ETFs may extend into November.
• Market uncertainty driven by geopolitical tensions is putting pressure on prices.

Solana whale moves signal exchange outflows

On-chain data shows that major institutional players have been offloading SOL. According to Lookonchain, digital asset manager Galaxy Digital deposited 250,000 SOL ($51.6 million) to Binance. These funds are linked to the public trading company Forward Industries, which acquired 6.82 million SOL in September. On October 15, Forward Industries deposited 993,058 SOL to Coinbase Prime and 250,000 SOL ($50M) to Galaxy Digital. Galaxy Digital’s transfer to Binance, in turn, suggests that Forward Industries may be preparing to sell.

The same day, FTX/Alameda unlocked 192,936 SOL ($39.32M) from a staking address and deposited 88,131 SOL ($17.64M) to Coinbase Prime, signaling continued bankruptcy asset liquidation. Such deposits often precede liquidations or dumps, helping explain the Solana price drop toward the $195 zone.

Several spot Solana ETF applications from firms like Fidelity, Franklin Templeton, Invesco, Bitwise, and others had deadlines approaching, some around mid-October 2025. The US government shutdown has put the review and approval process into limbo, as the work of the US Securities and Exchange Commission (SEC) is partially frozen. The October 16 deadlines for Bitwise, 21Shares, and other applicants were affected by earlier procedural delays. Meanwhile, the shutdown entered its third week, having started on October 1 due to partisan disagreements between Republicans and Democrats over federal spending levels. That backdrop is another reason of why is Solana down today as traders cut exposure into the headline risk.

Solana’s decline comes amid a broader market downturn, with the overall sector down about 1.2% in the past 24 hours. President Trump’s announcement of 100% tariffs on Chinese imports has raised fears of a renewed trade war. China responded with new restrictions on rare-earth exports and sanctions on U.S. firms. These developments spooked global markets, decoupling crypto from safe-haven assets like gold and triggering massive liquidations - over $19 billion wiped out earlier this week, the largest in history. This geopolitical shock added to crypto’s vulnerabilities, contributing to why is Solana dropping.