Solana maintained a price above $100 on Monday, trading near $101.45 despite pressure from ongoing ETF redemptions and a pullback in derivatives market activity. The cryptocurrency, which recently experienced its third consecutive week of decline, remains below its 50-day Exponential Moving Average, with a key support level emerging at $98.
ETF outflows persist, signaling ongoing investor caution
Exchange-traded funds focused on Solana saw net withdrawals of $17.30 million last week, according to SoSoValue, bringing total October outflows to $72.24 million. This represents the third consecutive week of negative flows, as investors continued to reduce their exposure to SOL investment products.
Ongoing ETF redemptions underscore a weaker appetite for fund-based exposure to Solana, especially while the token trades near critical technical levels. While individual motivations behind these moves are not specified, the sustained pace of outflows leaves Solana without a strong source of institutional buying support.
Recent data from SoSoValue showed Solana ETFs faced net outflows of $17.30 million last week, increasing the monthly withdrawal figure to $72.24 million, and highlighting ongoing redemptions in SOL-linked investment products.
Combined with other market factors, these withdrawals point to a period of caution among traders and institutional participants.
Derivatives and technical signals indicate subdued momentum
Solana’s derivatives market also illustrated cooling sentiment. CoinGlass reported that open interest in SOL futures dropped to $6.27 billion from $6.34 billion a week earlier, marking a 2% decline. Reduced open interest typically signals lower leveraged activity in the market, though falling spot prices can also contribute to this trend.
It remains unclear whether these changes primarily reflect retail activity or institutional repositioning, but the figures indicate a move toward caution. The muted sentiment persists despite Solana’s recent technical upgrade, known as Alpenglow, which introduced a new consensus engine—Votor—aimed at sharply reducing transaction finality times.
Mini dictionary: Alpenglow upgrade (Solana) — A recent protocol update on Solana that replaced TowerBFT with the Votor consensus engine, aimed at enhancing network performance by reducing transaction finality from approximately 12 seconds to as little as 150 milliseconds.
Although this improvement targets user experience and overall throughput, it has not yet led to a clear uptick in market demand or price recovery.
Key support levels and technical outlook
Technically, SOL remains below its 50-day EMA, set at $105.99, but continues to trade above its 200-day EMA at $98.27. This configuration suggests continued weakness in the shorter term, while still holding onto critical long-term support.
The psychological $100 level acts as a benchmark for market sentiment, while the 200-day EMA is viewed as the next significant technical floor. A confirmed breach below $98.27 could intensify downward pressure, potentially exposing SOL to its upward trendline support near $86.67.
| Technical Level | Current Price/Value | Significance |
|---|---|---|
| 50-day EMA | $105.99 | Short-term resistance |
| 200-day EMA | $98.27 | Key support |
| Psychological support | $100 | Market benchmark |
| Resistance (Sept 25 high) | $122.94 | Next major resistance |
| Trendline support | $86.67 | Potential next support if $98 breaks |
Technical indicators suggest subdued momentum. The daily Relative Strength Index is presently at 36.83, pointing to limited buying strength but remaining above the oversold threshold. The Moving Average Convergence Divergence (MACD) line also sits slightly below its signal in negative territory, reinforcing the prevailing downward bias.
To trigger a potential rebound, Solana would first need to decisively move above the 50-day EMA near $107.33. Clearing this level could ease immediate selling pressure and improve the short-term technical picture. Still, persistent ETF redemptions and weakening derivatives activity make defending the $100 area and 200-day EMA pivotal for now.
