Solana (SOL) is trading around $94.32 on Monday, extending its losing streak to five consecutive weeks. The cryptocurrency remains under pressure as institutional investors withdraw funds from Solana exchange-traded funds (ETFs), while on-chain data suggests weakening demand.
According to SoSoValue, spot SOL ETFs recorded $71.47 million in net outflows last week, marking the largest weekly withdrawal since these products launched. This marks four consecutive weeks of negative flows, raising concerns about institutional appetite for the digital asset.
ETF Outflows Signal Institutional Caution
The persistent outflows reflect a broader trend of institutional investors reducing exposure to Solana. The $71.47 million weekly withdrawal is a significant indicator of waning confidence, especially as the cryptocurrency struggles to recover from its recent downturn.
ETF flows are a key gauge of institutional demand because they represent changes in investor exposure through regulated products. Sustained withdrawals can amplify bearish sentiment, particularly when they coincide with falling prices and reduced trading activity.
For now, the lack of a meaningful recovery in ETF demand leaves SOL vulnerable to further selling pressure.
On-Chain Data Shows Selling Pressure
Solana's on-chain and trading activity also reflect the weakness. According to CryptoQuant, both spot and futures markets are showing signs of caution, with large whale orders and sell-side dominance emerging. Whale activity is closely monitored because large investors can significantly influence short-term price movements, especially during periods of reduced liquidity.
The presence of substantial sell orders suggests that some major market participants may be reducing their exposure or positioning for further declines. CryptoQuant's data also indicates overheating conditions in Solana's spot market, which can point to an imbalance in trading activity and increase the risk of sharp price swings.
Technical Outlook: SOL Below Key Moving Averages
Solana is trading below its major daily Exponential Moving Averages (EMAs), with the 50-day EMA at $103.81, 100-day EMA at $99.96, and 200-day EMA at $98.08. Trading below all three moving averages suggests that short-term recovery attempts remain weak, with several technical barriers standing in the way of a sustained rebound.
The price has also fallen below the previous horizontal resistance level at $97.76, adding another obstacle for buyers. Momentum indicators support the bearish outlook. The daily Relative Strength Index (RSI) is hovering near 28, within oversold territory, indicating intense selling pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) remains in negative territory, suggesting that bearish momentum has not fully subsided.
For Solana to begin reversing its recent losses, buyers will first need to reclaim the $97.76 resistance level. A sustained move above this barrier could open the door for a test of the 200-day EMA at $98.08, followed by the 100-day EMA at $99.96. The $100 psychological level could also become an important battleground between buyers and sellers.
If SOL manages to break above these levels, attention could shift toward the 50-day EMA at $103.81, which represents a stronger resistance zone. A decisive recovery above $103.81 would improve the short-term technical outlook and suggest that buying momentum is returning. Beyond that, the next major horizontal resistance sits around $122.76, although reaching that level would require a considerably stronger recovery.
On the downside, Solana's first significant support lies around $88.42, near a previously broken ascending trendline. A decline toward this level would extend the cryptocurrency's recent losing streak and put buyers under additional pressure. If the $88.42 support fails to hold, SOL could fall toward the next major horizontal support at $78.35. That level may attract renewed buying interest, particularly from traders looking for a potential rebound after an extended selloff. However, a move toward $78.35 would represent a substantial decline from current prices and further weaken Solana's broader technical structure.
This article is for informational purposes only and does not constitute financial advice.
