Solana has fallen to its lowest point in five months as ETF inflows slow, derivatives data weaken and technical signals show shaky support levels.
Solana is now facing a tough stretch as its price loses ground despite steady ETF inflows.
Recent market action shows that it is facing weak recovery attempts as traders reduce risk exposure across spot and derivatives markets. Sentiment has turned cautious so far, as the price tests levels last seen five months ago.
ETF Strength Slows While Selling Pressure Builds
Solana ETFs started strong and drew inflows for thirteen straight days. That streak showed clear interest from institutions during the first weeks of trading. Data from SoSoValue shows that the group added $1.49 million on Thursday.
This brings the total to about $370 million since launch. Total assets now sit above $533 million.
The streak looks less impressive when viewed against the latest numbers. Thursday saw the weakest figure since the launch on October 28. The Bitwise Solana ETF was the only product that logged inflows that day.
The softer figure matches the broader market tone. Bitcoin ETFs lost $866 million on the same day. This marks their second-worst session since launch. Ether ETFs also lost $259.2 million and saw two straight days of sharp outflows.
The weaker ETF numbers now show lower appetite across funds. Market stress often shows up first through outflows or soft inflows and the same pattern now appears in Solana’s price action.
Solana Breaks Long-Term Support As Price Slips
SOL fell more than 34% across two weeks and touched $142 on Friday. This marks its lowest point since late June.
The drop also broke the 100-week SMA that helped support the long climb that began in early 2023. The move below this level turns many long-term setups bearish.
Glassnode data shows weak support near $140. Its UTXO realised price distribution chart points to thin buying interest below this range.
When charts show few clusters near a level, the price often struggles to hold steady. That trend raises the risk of a slide toward the next major area at the 200-week SMA near $100.
Solana is also testing a daily order block around $140. These blocks often hold temporary support if traders defend them with volume. Current data shows limited defense and if the price falls through this zone, a move toward $100 becomes more likely.
The RSI offers no help. As of writing, RSI sits near its weakest reading since April. Such levels show heavy selling pressure and a dip under $150 also sets up a move toward $126.
Related Reading: SOL Price Eyes $180 as DApp Revenue Surges Amid ETF Filing
Derivatives Market Shows Soft Demand For Solana
The derivatives data lines up with spot weakness. Traders are cutting exposure as market volatility increases and CoinGlass reported a 3.34% drop in Open Interest across SOL futures during the last 24 hours.
Open Interest now stands at about $7.35 billion. The drop shows traders closing long positions or reducing leverage.
Funding rates tell the same story. The OI-weighted rate moved to a negative reading of -0.0076% after staying near neutral earlier in the day.
Such conditions make it hard for a fast recovery to take shape. If Open Interest continues to fall or if ETFs see their first net outflow, buyers will struggle to support a strong bounce.
Technical Signals Show Rising Chance Of A Move Toward $100
The charts are showing a cluster of bearish signals. SOL currently trades under the $150 zone that acted as a firm line during past dips.
The 50-day EMA is also trending lower and moving closer to the 200-day EMA. If the two cross, traders are viewing the pattern as a sign of a stronger downward trend. This setup tends to draw short sellers and reduce long exposure.
Meanwhile, the MACD remains below its signal line and is showing no sign of a positive shift.
The indicator thus suggests that the downward move remains active. The RSI currently sits near 31 and is hovering near oversold territory. When RSI nears this zone while price sets fresh lows, it sometimes builds a bullish divergence.
This pattern can hint at a short-term bounce. However, such bounces often struggle unless volume returns.