Key Takeaways
- Solana price faces downside risks, with support zones at $140 and $143 critical for potential recovery.
- Solana ETFs continue to attract significant inflows ($351M since launch), highlighting institutional interest.
- Long-term holders are cautious, reducing supply amid technical weakness.
- Network activity remains low, signaling subdued on-chain engagement despite ETF interest.
- Institutional initiatives, like share buybacks and tokenization, signal continued ecosystem evolution.
Solana Faces Price Pressure Amid ETF Interest
Solana (SOL) is showing a mixed market picture as recent price declines clash with continued interest in Solana ETFs. The cryptocurrency fell sharply from $153 to $145, breaking below the key $150 support level, signaling technical weakness and panic-driven selling. Despite strong inflows into Solana spot ETFs, traders remain cautious, and short-term momentum leans bearish.
Price Action and Technical Outlook
Solana’s price drop highlights a fragile technical structure. The next support zones are around $140 and a critical level at $95. Traders note that a rebound may occur if SOL can close above $143, with resistance near $146 and $167. Surpassing $167 could reduce the downtrend, but failing to maintain current levels may keep bearish pressure intact. Long-term holders are also reducing supply, selling portions of their holdings and signaling hesitation about a near-term recovery.
Also Read: Solana Price Drops 10% Despite DeFi Dev Corp’s $5B Plan to Buy More SOL
ETF Inflows Show Institutional Interest
Despite the price dip, Solana ETFs on the NYSE and Nasdaq continue to attract investors. On November 18 alone, net inflows reached $30 million, adding to hundreds of millions in cumulative inflows, including $351 million since launch. This ongoing demand demonstrates institutional interest and confidence in Solana’s long-term prospects, even as short-term price action remains volatile.
Also Read: Solana ETFs Spark Demand Despite Price Drop
Network Activity and Institutional Moves
Network metrics indicate a slowdown in on-chain activity, with daily active addresses at a 12-month low. Nonetheless, institutional developments continue, including Solana treasury companies approving share buybacks and tokenizing shares. These moves reflect growing sophistication and evolving engagement from larger players, which may support Solana’s ecosystem over time.
Conclusion
Solana is navigating a challenging market, balancing sharp price pressure against strong ETF inflows and evolving institutional participation. Traders and investors should monitor support levels at $140 and $143 closely, while keeping an eye on resistance near $167 for potential trend reversals. Despite short-term weakness, institutional interest suggests long-term engagement with the SOL network remains intact.
