Solana News Today: Structural Headwinds and Security Hacks Overshadow Solana's Staking Surge

Solana (SOL) has broken below its November trendline, signaling renewed bearish pressure as the cryptocurrency faces mounting challenges from weakening network activity, negative ETF flows, and recent security incidents. While the token briefly tested $145 earlier this month, technical indicators and on-chain metrics suggest a potential correction toward $100 could follow. Analysts and market observers are closely monitoring key levels as the ecosystem navigates a shift in investor sentiment and structural changes in capital allocation.

The bearish technical setup is underscored by a classic bear flag pattern, which projects a deeper price decline if current trends persist. According to Nansen data, Solana's total value locked (TVL) has fallen 20% month-to-date, with a 16% drop in network fees and a 6% decline in active addresses over the past week. This weakening demand is compounded by negative flows in Solana ETFs, which recorded a $8.2 million net outflow on Nov. 27—the first since their launch. By contrast, Bitcoin and Ethereum ETFs faced billions in redemptions during the same period, while Solana attracted $369 million in inflows this month as investors increasingly view it as a yield-generating asset.

The divergence in ETF performance reflects a broader shift in market dynamics. According to Bohdan Opryshko, co-founder of Everstake, institutions and retail investors are now prioritizing Solana's native staking rewards of 5%–7%, a feature absent in Bitcoin ETFs and limited in Ethereum products. This trend has driven staked SOL to 407 million tokens, with 67% of the circulating supply now locked in staking. However, the yield-driven appeal has not translated into sustained price strength, as Solana's derivatives market remains subdued and network fees stagnate.

Recent events have further clouded the outlook. The Upbit hack, which resulted in a $36 million theft from a Solana hot wallet on Nov. 27, triggered liquidity restrictions and amplified selling pressure. The exchange's decision to halt SOL deposits and withdrawals for maintenance removed a key liquidity source, exacerbating short-term volatility. CoinDesk's analysis highlighted a 4.9% drop in Solana's price to $153 amid the incident, breaking below critical support levels despite $336 million in institutional inflows.

Looking ahead, Solana's path depends on resolving these structural and technical headwinds. A rebound above $150 could test the bear flag's upper boundary, while a sustained break below $100 would validate a deeper correction. Market participants are also watching for signs of capital reallocation, as the growing emphasis on yield-bearing assets may reshape Solana's role in crypto portfolios. For now, the interplay between staking demand, network activity, and external risks will likely dictate the next chapter in Solana's price trajectory.