Solana News Today: Institutions Bet Big on Solana ETFs as Price Dives 30%, Testing $130 Support's Resilience

Solana's ecosystem is undergoing a pivotal shift as spot exchange-traded funds (ETFs) for the blockchain'snative token, SOL, continue to attract record inflows despite a prolonged price slump. The recent launch of multiple ETFs, including Bitwise's BSOL and Fidelity's FSOL, has injected $476 million into the space over 17 consecutive days, even as SOL's price has fallen nearly 30% from $186 to $130. This surge in institutional demand contrasts with bearish technical indicators, sparking debate over whether the $130 level marks a potential bottom or a precursor to further declines.

The ETF momentum is driven by a combination of regulatory clarity and growing institutional confidence. Bitwise's BSOL dominates the market, accounting for 89% of total inflows, while Fidelity's entry with a 0.25% fee structure has added another layer of credibility. Cumulative assets under management now exceed $2 billion, with ETF analyst Eric Balchunas noting that inflows persist "basically every day" despite "extreme fear" in the broader crypto market. Meanwhile, VanEck's Solana ETF, which selected SOL Strategies as its custodian, further underscores the institutionalization of the asset class.

Price action, however, tells a more nuanced story. SOL has tested key support levels repeatedly, with $130 emerging as a critical psychological threshold. On-chain data suggests buyers have stepped in at this level, evidenced by a V-shaped recovery pattern on four-hour charts and a rise in the Relative Strength Index (RSI) from 28 to 50 since November 13. Analysts highlight that previous rebounds from $130 have historically triggered 80–100% rallies, such as the 108% surge to $265 in late 2024.

Futures markets, meanwhile, reveal mixed signals. Open interest has increased by 5% in the past 24 hours, reaching $7.3 billion, but aggregated OI remained flat during SOL's recent move toward $140, suggesting a lack of fresh long participation. Funding rates have turned positive, indicating growing confidence among short-term traders. The 50-period exponential moving average (EMA) at $160 remains a critical reentry point for bulls, with a break above this level potentially setting the stage for a $200 retest.

Institutional demand is further bolstered by Solana's improving on-chain fundamentals. Daily active addresses have risen 18% over 30 days, while transactions increased 9.1%, signaling sustained network growth. Projects like GeeFi, which aims to bridge crypto's utility gap with real-world spending solutions, are also gaining traction, selling 5.3 million tokens in its launch phase. Such developments align with broader efforts to enhance Solana's infrastructure, including upgrades like Firedancer, which could push transaction throughput to over 1 million transactions per second.

Despite these positives, risks remain. Futures data shows selling pressure building near $140, with a potential retest of $120 looming if resistance fails. For now, the $130–$140 range defines Solana's near-term battleground, with ETF inflows and on-chain resilience offering a counterbalance to macroeconomic headwinds.

---