**Solana Hits Five-Month Low Amid Slowing ETF Inflows and Weakening Technical Indicators**
Solana (SOL) has fallen to its lowest point in five months as ETF inflows slow, derivatives data weaken, and technical signals indicate shaky support levels. Despite early strength from ETFs, Solana is now facing a challenging period, with its price losing ground amid cautious market sentiment and reduced risk appetite.
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### ETF Strength Slows While Selling Pressure Builds
Solana ETFs initially attracted strong interest, drawing inflows for thirteen consecutive days. This streak highlighted clear institutional demand during the early weeks of trading. According to data from SoSoValue, Solana ETFs added $1.49 million on Thursday alone, bringing the total inflows to approximately $370 million since their launch. Total assets under management now exceed $533 million.
However, the recent inflows appear less robust when examined closely. Thursday’s $1.49 million inflow was the weakest since the ETFs launched on October 28. Furthermore, the Bitwise Solana ETF was the only product to log inflows that day. This softer performance aligns with broader market trends, as Bitcoin ETFs lost $866 million on the same day—their second-worst session since launch. Ether ETFs also experienced significant outflows, shedding $259.2 million over two consecutive days.
These weaker ETF numbers indicate a declining appetite for funds across the crypto sector. Market stress often first manifests through ETF outflows or soft inflows, a pattern now mirrored in Solana’s price action.
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### Solana Breaks Long-Term Support as Price Slips
Over the past two weeks, SOL has dropped more than 34%, reaching $142 on Friday—the lowest level since late June. This decline also broke below the 100-week simple moving average (SMA), a key support level that had underpinned Solana’s strong ascent since early 2023. Falling below this SMA shifts many long-term outlooks to bearish.
Data from Glassnode highlights weak support around $140. Its UTXO realized price distribution chart reveals thin buying interest below this range; low buying clusters at a given level typically signal price instability. This increases the risk of a further slide toward the next major support zone near the 200-week SMA, around $100.
Solana is also currently testing a daily order block near $140. Such blocks can provide temporary support if defended by sufficient trading volume. However, current data shows limited defense of this zone, meaning that a break below $140 could open the door to a decline toward $100.
The Relative Strength Index (RSI) is of little comfort. Currently near its weakest reading since April, the RSI reflects heavy selling pressure. A dip below $150 could set SOL up for a move down to approximately $126.
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### Derivatives Market Reflects Weak Demand for Solana
The derivatives market corroborates the spot weakness. Traders are reducing exposure amid rising volatility. CoinGlass reported a 3.34% drop in open interest (OI) for SOL futures within the last 24 hours, bringing total OI to about $7.35 billion. This decline indicates traders are closing long positions or lowering leverage.
Funding rates echo this bearish sentiment. The open interest–weighted funding rate slid to a negative reading of -0.0076% after hovering near neutral earlier, signaling a challenging environment for quick price recoveries.
If open interest continues to shrink or if ETFs record their first net outflows, buyers may find it difficult to sustain a strong rebound.
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### Technical Signals Suggest Increased Risk of Decline Toward $100
Technical analysis reveals multiple bearish signals on Solana’s charts:
– SOL currently trades below the $150 zone, which previously served as firm support during past pullbacks.
– The 50-day exponential moving average (EMA) is trending lower and approaching the 200-day EMA. A cross between these two moving averages would typically signal a strong downtrend, attracting short sellers and deterring longs.
– The Moving Average Convergence Divergence (MACD) remains below its signal line, indicating ongoing downward momentum.
– The RSI is near 31, hovering close to oversold territory. While an RSI near oversold levels combined with fresh price lows can sometimes form a bullish divergence—hinting at a potential short-term bounce—such recoveries often lack strength without accompanying volume increases.
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**Conclusion**
Solana faces a tough market outlook as slowing ETF inflows, weakening derivatives demand, and vulnerable technical support create a pressured environment. Traders should watch key levels around $140 and $100 closely, as these zones may dictate the next major moves for SOL’s price. While short-term bounces remain possible, sustained recovery will require renewed buying interest and stabilization across both spot and ETF markets.
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*Related Reading: [SOL Price Eyes $180 as DApp Revenue Surges Amid ETF Filing]*
https://bitcoinethereumnews.com/tech/solana-news-sol-faces-sharp-drop-as-etf-strength-fails-to-support-price/
