Solana's price action on Tuesday saw a brief recovery above $107, but the cryptocurrency has since slipped back below its 50-day exponential moving average (EMA) at $107.49. The token is currently trading around $106.54, reflecting a 4% decline over the past 24 hours. Despite positive developments in Hong Kong, including the listing of a second spot Solana ETF and a new tokenization initiative, SOL has struggled to maintain upward momentum.
Second Hong Kong ETF Listing
On Monday, Solana announced that the Pando Solana ETF (2831.HK) would list on the Hong Kong Stock Exchange on Tuesday, becoming the city's second spot Solana ETF. This product expands access to SOL through a traditional investment vehicle, adding to Solana's institutional presence in Hong Kong. However, the announcement did not immediately translate into sustained buying pressure.
In addition, Solana highlighted the onchain tokenization of USDGO Plus SP, a market-neutral digital asset fund built on USDGO, a stablecoin with over $1 billion in circulation that is described as federally regulated in the United States. OSL tokenized and distributed the fund for eligible professional investors in Hong Kong. While this adds another financial product to Solana's tokenization ecosystem, its availability is limited to eligible investors, and its eventual adoption or effect on SOL demand remains uncertain.
ETF Outflows Persist
Despite these developments, spot Solana ETFs recorded $700,000 in net outflows on Monday, according to CoinGlass. This marked the sixth consecutive session of withdrawals, although the pace of redemptions has eased compared to the previous week. A return to sustained inflows would improve the demand backdrop, but for now, negative flows remain a constraint on the recovery.
Technical Outlook
The SOL/USD daily chart remains bearish, with the token losing 4% of its value in the last 24 hours. The move above the 50-day EMA at $107.49 restores an important support reference, but the narrow margin leaves it vulnerable to another test. If SOL can rally above this level, it could reclaim the September 28 high of $124.89, with the next major resistance at $149.36.
However, momentum indicators are weak. The Relative Strength Index (RSI) sits at 40, below its neutral midpoint, while the Moving Average Convergence Divergence (MACD) remains below zero. These readings suggest the rebound has yet to establish strong bullish momentum. If the 50-day EMA fails to hold, the next support references are the 100-day EMA at $99.34 and the 200-day EMA at $97.18, alongside horizontal support near $96.19. Deeper declines could bring rising trendline support around $84.82 into focus, followed by $77.07.
Maintaining the recovery above $107.49 would help stabilize the near-term structure and support a move toward recent highs. Until then, the market remains cautious, with ETF outflows and subdued momentum tempering optimism.
This article is for informational purposes only and does not constitute financial advice.
