Solana News Today: Solana ETFs Attract $476M as Price Struggles to Breakout

Solana (SOL) has edged closer to a potential breakout as spot ETF inflows continue to drive investor interest, despite a broader bearish trend in the cryptocurrency market. At $141 on Thursday, the token remains below critical technical levels but has seen a 17-day streak of inflows into U.S.-listed SOL ETFs, totaling $476 million since their October 28 debut. This contrasts sharply with Bitcoin and Ethereum ETFs, which have faced outflows in November, signaling a shift in capital toward altcoins like Solana.

The inflow momentum has been led by Bitwise's BSOL ETF, which alone accounted for $424 million -89% of total net inflows-while Grayscale's GSOL and Fidelity's FSOL added $12.6 million and $5 million, respectively. These figures underscore growing institutional and retail appetite for Solana, particularly as spot ETFs offer a regulated pathway to crypto exposure without direct asset ownership. However, market structure remains fragile. Futures open interest (OI) for Solana has fallen to $7.2 billion from a $17 billion peak in September, indicating waning speculative activity. A continuation of this trend could push the price below $130, a level broken earlier this month.

Technical indicators paint a mixed picture. Solana's 50-day and 200-day exponential moving averages (EMAs) at $173 and $180, respectively, continue to cap upward movement, while the RSI at 38 suggests subdued bullish momentum. A breakout above $160-a round-number resistance near the 100-day EMA-could reignite a rally, but failure to reclaim $130 would likely prolong the downtrend. CoinGlass data also highlights a descending trend line from $261 as a key overhead barrier, with resistance clustering near $166.

Market observers caution that while ETF inflows reflect demand, they have yet to translate into sustained price action. Futures data shows minimal fresh long participation during Solana's recent rebound from $130 to $140, suggesting a lack of conviction among traders. Analysts like Eric Balchunas note that the $2 billion in cumulative inflows for SOL ETFs have occurred amid "extreme fear" in the crypto market, raising questions about whether the trend is driven by contrarian buying or forced liquidations.

The broader ETF landscape highlights Solana's unique position. While Bitcoin spot ETFs have seen $2.96 billion in November outflows, Solana's products have defied the trend, drawing capital even as the CoinDesk 20 Index fell 12% in seven days. This divergence underscores Solana's appeal as a high-growth altcoin, though risks remain. A breakdown below $120-a prior support level-could trigger further selling, particularly if risk-off sentiment persists and open interest continues to decline.