Solana News Today: Short Sellers Seize Solana as ETFs Stall and $100 Support Looms

Solana (SOL) has plunged to a five-month low amid waning institutional demand and deteriorating market sentiment, despite a brief surge in ETF inflows earlier this year. The token has lost over 13% in the past week, extending its decline to more than 34% since late October. The recent performance underscores growing concerns about the cryptocurrency's resilience as broader market volatility and shifting investor appetite amplify downward pressure.

Solana's spot ETFs, launched in late October, initially drew strong inflows, but momentum has since faltered. On Thursday, the funds recorded a net inflow of just $1.49 million, the weakest since their inception. This contrasts sharply with Bitcoin and Ethereum ETFs, which posted outflows of $866 million and $259 million, respectively, on the same day. Analysts attribute the slowdown to broader risk-averse sentiment and a lack of conviction among institutional investors. "The ETF data tells a story of cooling demand," said one market analyst, noting that cumulative inflows for Solana ETFs now stand at $370 million, with Bitwise's BSOL fund dominating the flow.

The derivatives market reflects mounting bearish pressure. Open Interest (OI) for SOL futures has dropped 3.34% in 24 hours to $7.35 billion, indicating traders are closing long positions or reducing leverage. CoinGlass data also shows the OI-weighted funding rate turning negative to -0.0076%, a sign that short sellers are gaining control. Meanwhile, the UTXO Realized Price Distribution (URPD) from Glassnode highlights sparse buy support below $140, increasing the risk of a further slide toward the 200-week SMA at $100.

Key technical indicators reinforce the bearish outlook. The Relative Strength Index (RSI) has fallen to 31, nearing oversold territory, while the Moving Average Convergence Divergence (MACD) remains below its signal line, signaling a persistent downward trend. The 50-day EMA is also converging with the 200-day EMA, raising the likelihood of a "Death Cross" pattern-a classic bearish signal. If SOL breaks below the $126 level, it could test the critical $100 support, with some analysts warning of a potential drop to $95.

With key support levels under threat and institutional demand cooling, Solana faces a pivotal period. While the ecosystem's fundamentals-such as growing DeFi adoption and partnerships like SoFi Bank integration-remain robust, technical and macroeconomic headwinds dominate near-term price action. Traders will closely watch the $140 and $126 levels, with a breakdown below $100 potentially triggering a deeper correction. For now, the path of least resistance appears decisively downward, testing the resilience of both the asset and its investor base.