Solana News Today: Solana ETFs Draw $476M as Death Cross and $120 Support Test Loom

Solana (SOL) faces a pivotal juncture as its price remains mired near the $120 support zone, with analysts and investors closely monitoring whether the recent surge in institutional demand can catalyze a reversal toward the $170 target. Despite a 30% decline from its recent peak of $186, spot Solana ETFs have defied the broader market downturn, logging 19 consecutive days of inflows totaling $476 million as of November 21. Bitwise's BSOL ETF, which accounts for 89% of cumulative inflows at $424 million, has been the primary driver, leveraging its 0.20% fee structure and staking yield to attract capital. This institutional appetite contrasts sharply with Bitcoin and Ethereum ETFs, which recorded outflows of $3.7 billion and $1.64 billion, respectively, over the same period.

Technical analysis highlights a fragile market structure for Solana. A death cross-where the 50-day moving average crosses below the 200-day line has formed for the first time since early 2023, signaling bearish momentum. The price remains trapped within a descending channel since mid-September, with resistance at $135 and critical support at $121–$123. While buyers have defended the $120 zone, the Relative Strength Index (RSI) at 33 suggests oversold conditions, and long lower wicks on recent candles indicate aggressive buying at key levels. Analysts like Crypto Tony emphasize that a clean reclaim above $130 is necessary to flip the short-term trend, with $135–$140 as the next hurdles.

Institutional and whale activity offers a mixed outlook. Solana's ETF inflows coincide with rising whale accumulation, with long-term holders adding to their positions despite the price drop. On-chain data from Santiment shows steady growth in new addresses and active wallets, hinting at early accumulation despite a 49% decline in market value since September. Meanwhile, Franklin Templeton's entry into the Solana ETF space with a fee-waiver on the first $5 billion in assets under management aims to replicate the success of Bitcoin ETFs. The firm's strategy underscores growing institutional confidence in Solana's ecosystem, which has seen rapid expansion in throughput, DeFi, and meme tokens.

However, the price has yet to respond to the influx of capital. At $136, SOL remains below its 50-day EMA, with futures open interest flat as bulls struggle to break through $140 resistance. A breakdown below $120 could trigger a retest of the $70–$95 range, while a sustained move above $144 would signal a potential trend reversal. The divergence between ETF inflows and price action raises questions about the sustainability of current demand, with experts noting that retail participation often follows whale activity.

As the market weighs these dynamics, Solana's path hinges on institutional conviction and the ability of buyers to hold key support levels. With over $10 million in daily ETF inflows and rising on-chain participation, the $170 target remains within reach-but only if the $120 zone holds firm.