Solana News Today: Institutions Pour $370M into Solana ETFs as Price Hits 5-Month Low

Solana ETF Investments Surge Despite SOL Dropping Below Crucial Price Level

Solana (SOL) continues to face downward pressure, trading near a five-month low as broader cryptocurrency markets reel from Bitcoin's (BTC) decline below $100,000. However, U.S. spot Solana exchange-traded funds (ETFs) have defied the bearish sentiment, recording persistent inflows despite the asset's technical and on-chain struggles. The ETFs have added $370 million in cumulative inflows since their October 28 launch, with Bitwise's BSOL and Grayscale's GSOL leading the charge. This contrasts sharply with Bitcoin and Ethereum ETFs, which have seen significant outflows, including a $870 million exodus from BTC funds on November 13 - the second-largest single-day withdrawal in history.

The divergence between ETF flows and price action has sparked debate among analysts. While institutional demand for Solana remains robust, retail sentiment and technical indicators suggest a deeper correction may be imminent. CoinGlass data shows Solana's futures open interest (OI) has fallen 3.34% in 24 hours to $7.35 billion, reflecting reduced leverage and long-position closures. On-chain metrics further underscore the fragility of the current price level: Glassnode's UTXO realized price distribution reveals sparse historical demand below $144, with minimal support until the $24 range.

Technical analysts warn that Solana's breakdown below key support levels could trigger a cascade to the $100 psychological barrier. The asset has already breached its 100-week simple moving average and a multiyear uptrend established since early 2023. A death cross - where the 50-day exponential moving average (EMA) crosses below the 200-day EMA - is now a looming risk, potentially cementing a prolonged bearish trend. Meanwhile, the relative strength index (RSI) hovers near oversold territory at 31, though a bullish divergence has emerged as prices hit fresh lows without matching RSI lows according to CoinGlass data.

Institutional confidence, however, appears undeterred. Despite a 20% drop in SOL's price since late October, ETF inflows have continued for 13 consecutive days. Bitwise's BSOL alone attracted $12.46 million on November 12, while Grayscale's GSOL added $5.59 million according to crypto news sources. The New York Stock Exchange's recent launch of options trading for Solana ETFs has further bolstered institutional participation, offering new risk management tools.

Market participants remain divided on Solana's near-term trajectory. While some argue that ETF demand signals a buying opportunity, others caution that weak on-chain fundamentals and broader market fragility could prolong the downturn. If Solana stabilizes above $150, it may test resistance at $173, but a break below $142 could reignite selling pressure toward the $100 level.