Solana News Today: Solana ETFs Soar, Token Price Dives 34% in Two Weeks

Solana's native token, SOL, has fallen to a five-month low despite strong inflows into its spot exchange-traded funds (ETFs, which have recorded net inflows for 14 consecutive trading days, accumulating $382 million in total. The surge in institutional demand for the ETFs has failed to prop up the token's price, raising concerns about further declines.

The Bitwise Solana ETF (BSOL) has been the primary driver of the inflows, with $357.8 million in cumulative inflows since its October 28 launch, according to data from Farside Investors. Grayscale's GSOL ETF, launched the following day, has attracted $24.4 million, highlighting uneven investor appetite. Cumulative inflows across both ETFs now exceed $380 million, though recent daily inflows have weakened. On Thursday, for instance, BSOL alone added $1.49 million, the lowest since its launch.

Despite the ETFs' success, SOL's price has plummeted over 34% in two weeks, reaching $142 on Friday - the lowest since June 23. The token has breached key technical levels, including a multi-year uptrend and a 100-week moving average, sparking fears of a drop to $100. Analysts point to waning ETF inflows and bearish technical indicators as contributing factors. The UTXO realized price distribution from Glassnode shows minimal support below $140, indicating few holders are defending the price at this level.

Market sentiment has further deteriorated as other crypto ETFs, such as those for Bitcoin (BTC) and Ether (ETH), face outflows. BTC ETFs recorded $866 million in net outflows on Thursday, while ETH ETFs lost $259.2 million. This divergence underscores a shift in investor priorities, with Solana ETFs remaining an outlier in a broader market downturn.

Technical analysts warn of deeper corrections. The MACD, Awesome Oscillator, and RSI all remain bearish, with the RSI hovering near 40 - a level that could signal a descent into oversold territory. If the $144 support level fails, SOL could retest $120 in November, with a potential drop to $80 by December.

Market participants are closely watching as the ETF inflow slowdown mirrors a cooling in Solana's momentum. After a peak daily inflow of $70 million in early November, inflows have dwindled to $6.78 million as of November 10. This decline coincides with a breakdown in Solana's price action, where a failed attempt to recover to $163.45 has left bulls struggling to regain control.

Institutional backing for the ETFs remains a bright spot. Bitwise seeded BSOL with $222.9 million, while Grayscale contributed $102.7 million, totaling $325.6 million in initial capital. The lower fee (0.20%) and staking features of BSOL have attracted investors seeking yield, a key differentiator in a market where on-chain returns are traditionally limited.

However, the ETFs' performance may not be enough to reverse SOL's downward trajectory. With technical indicators and market sentiment aligning against further gains, the token faces a critical juncture. A sustained rally above $144 could reinvigorate investor confidence, but bears appear poised to test lower support levels in the coming months.