Solana News Today: Institutions Redirect Capital to Solana as ETFs Outpace Bitcoin, Ethereum

Solana (SOL) is navigating a critical juncture as its price consolidates near the $155 support zone, with early signs of a potential pullback amid mixed technical indicators and surging institutional demand. The cryptocurrency, which dropped below $165 in recent trading, faces key resistance levels at $165 and $166, while bulls aim to defend $155 to prevent further declines, according to a TradingView report. Despite a 30% drop in active users during Q3 2025—indicating waning blockchain activity—Solana's ecosystem is bolstered by planned upgrades to boost transaction speeds to 1 million per second, a move aimed at enhancing competitiveness against centralized exchanges, as noted by Investorempires.

The recent price action has been influenced by a surge in institutional interest, with Solana ETFs outpacing Bitcoin and Ethereum in daily net flows. On November 4, Solana ETFs recorded a $14.9 million inflow, driven largely by Bitwise's BSOL, which drew $13.2 million, while Bitcoin and Ethereum ETFs faced outflows of $566.4 million and $219.4 million, respectively, according to Yahoo Finance. This trend underscores a broader reallocation of capital toward Solana, with total inflows reaching $89.9 million in a week—surpassing Bitcoin's $16.2 million and Ethereum's $57.6 million, per Coinotag. Analysts attribute this shift to Solana's scalability advantages, including its capacity for 65,000 transactions per second and low fees, which position it as a preferred blockchain for DeFi and institutional applications, according to a Ledger guide.

However, technical indicators remain bearish in the short term. The price has struggled to hold above the 100-hour simple moving average, and the Relative Strength Index (RSI) hovers near oversold levels, suggesting potential for a rebound if buyers defend $150 or $145, Investorempires noted. A breakdown below $155 could trigger a test of the $148 support, with further declines targeting $142, according to a TradingView note. On-chain metrics also show mixed signals: while total value locked (TVL) on Solana rose 2.27% in the last 24 hours to $10.215 billion, stablecoin liquidity has dropped 8.16% weekly to $13.816 billion, raising concerns about sustained demand, per an FXStreet report.

The broader market context highlights Solana's unique position. Unlike Ethereum's modular architecture, which prioritizes security and decentralization, Solana's monolithic design emphasizes speed and low costs, enabling real-time applications and high-frequency trading, a distinction explored in the Ledger guide. This distinction has attracted institutional players, including Western Union, which plans to launch a stablecoin on Solana in 2026, according to CryptoNews. Meanwhile, retail demand is resurging, with open interest in SOL futures rising 2.73% to $7.64 billion and short liquidations exceeding longs in the past 24 hours, as FXStreet reports.

Looking ahead, Solana's trajectory hinges on its ability to stabilize above $155 and capitalize on ETF-driven inflows. If buyers reclaim $166, the price could target $172 and eventually $188, aligning with Fibonacci retracement levels, Investorempires predicts. Conversely, failure to hold key supports could extend the downturn to $140–$130, warns a Yahoo article. With upgrades from Harmonic and infrastructure overhauls by Alchemy positioning the network for institutional scale, as CryptoNews details, Solana's long-term potential remains intact, even as near-term volatility persists.