SOL Tests Key $118 Support Amid ETF Inflows and RWA Growth

• SOL faces a key technical test at the $118 support level as traders watch for a potential deeper slide according to technical analysts.
• Solana spot ETFs attracted $2.93 million in inflows recently despite outflows in Bitcoin and Ethereum funds as reports show.
• Tokenized real-world assets on Solana surged to a record $873 million, highlighting institutional adoption.
• Solana's decentralized exchange volume hit $1.6 trillion in 2025, but rising NVT ratio signals bearish risk.

Solana (SOL) enters 2026 trading near $126 as traders closely monitor the $118 support level. This technical threshold has emerged as a key indicator of SOL's short-term health amid a broader crypto market downturn. Recent institutional activity through ETFs and real-world asset tokenization provides fundamental support. However, on-chain metrics present conflicting signals about SOL's valuation.

Why Is $118 a Critical Support Level for Solana?

The $118 price level represents a critical weekly support zone for Solana. A sustained break below this threshold could trigger a deeper slide toward $112 or even $90, according to technical analysts. On the flip side, holding $118 may pave the way for a rebound to $135 or $150. This technical tension comes amid spot ETF inflows that signal institutional interest near current levels.

Traders see $118 as a "line in the sand" determining whether SOL's current pullback remains healthy. The level gained significance after Solana ETFs attracted $342 million in their first 10 days and crossed $476 million in assets under management. That institutional baseline could help absorb selling pressure if tested.

How Are Solana ETFs Driving Institutional Adoption?

Solana spot ETFs pulled in $2.93 million on a recent trading day while Bitcoin and Ethereum products saw outflows. This divergence highlights a rotation toward altcoins rather than broad crypto abandonment. Spot Solana ETFs have now recorded 17 consecutive days of inflows, building a $476 million asset base that creates structural demand.

The SEC's streamlined crypto ETP approval process increases the likelihood of additional Solana ETF products in 2026. Major institutions like Ondo Finance and Maple Finance are expanding Solana-based real-world asset projects too. These developments suggest growing institutional comfort with Solana's technical infrastructure for financial applications beyond speculative trading.

What Do Solana's RWA and DEX Metrics Reveal About Its Health?

Tokenized real-world assets on Solana reached $873 million, demonstrating concrete institutional use cases. This milestone positions Solana as a leading blockchain for practical financial applications like tokenized bonds and private credit. The platform's speed and low transaction costs make it suitable for institutional adoption beyond typical DeFi and NFT use cases.

Meanwhile, Solana's decentralized exchange volume hit $1.6 trillion in 2025, ranking second only to Binance among all exchanges. That activity reflects robust network usage. Yet Solana's Network Value to Transactions (NVT) ratio climbed to a seven-month high, signaling that market value may be outpacing actual economic activity. This metric historically precedes price corrections when elevated.

Long-term holder behavior shows renewed accumulation, which could help counter selling pressure. Still, SOL remains vulnerable to broader market headwinds after closing 2025 down approximately 33%. The RWA growth and ETF inflows provide fundamental support against the bearish technical warnings.