Solana (SOL) continued its downward trajectory on Monday, trading near $94.32 and extending its losing streak to five consecutive weeks. The sustained decline has placed mounting pressure on the cryptocurrency as institutional investors reduce their exposure, especially through major flows out of Solana-linked exchange-traded funds (ETFs).
Institutional outflows from Solana ETFs accelerate
Data from SoSoValue indicated that U.S. spot Solana ETFs recorded $71.47 million in net outflows last week, marking their largest weekly withdrawal since launching. These negative flows have continued for four straight weeks, signaling a persistent drop in institutional appetite for SOL through regulated investment vehicles.
Institutional investors often use ETFs as a channel for gaining exposure to cryptocurrencies in a regulated framework. When these vehicles witness sustained outflows, analysts view it as a sign of shifting sentiment among large investors.
The ongoing ETF withdrawals align with SOL’s recent price weakness, as the asset struggles to maintain support above key levels. Five straight weeks of losses have weighed on investor confidence, and analysts are watching for signs of either stabilization or additional selling pressure.
Recent ETF flows suggest that institutions are paring back their exposure to SOL, with the largest outflow yet seen last week highlighting the extent of the current risk-off sentiment.
Industry observers also note that drying up institutional interest can exacerbate bearish sentiment, especially when accompanied by subdued market activity and declining prices.
| Week | SOL ETF Net Flow | SOL Price Trend |
|---|---|---|
| 4 weeks ago | Negative | Down |
| 3 weeks ago | Negative | Down |
| 2 weeks ago | Negative | Down |
| Last week | $71.47 million outflow (record) | Down |
On-chain signals point to increased selling
Alongside ETF outflows, on-chain and market data reflect similar bearish signals for Solana. CryptoQuant’s latest market summary showed that the spot and futures markets are seeing increased sell-side dominance, with large whale orders indicating reduced confidence among significant holders.
Large investors, commonly referred to as whales, often influence short-term price changes, particularly during periods of low liquidity. The emergence of substantial sell orders hints that these investors may be positioning for further declines or are offloading positions in anticipation of continued weakness.
CryptoQuant also reported that Solana’s spot market is displaying signs of overheating. This condition typically signals an imbalance between buyers and sellers, heightening the risk of volatile swings and price drops as selling pressure builds.
The convergence of weak institutional flows, dominant sell orders, and cautious whale behavior creates a challenging environment for any near-term recovery in SOL’s price.
Mini dictionary: CryptoQuant – CryptoQuant is a market analytics and data provider focused on blockchain and digital asset trading, offering real-time and historical analytical tools for traders and institutions.
SOL breaks below major technical supports
Technically, Solana is trading below key support zones. On Monday, the price hovered beneath important Exponential Moving Averages (EMAs): the 50-day EMA at $103.81, the 100-day EMA at $99.96, and the 200-day EMA at $98.08.
The drop below these moving averages points to persistent downward momentum, making short-term recovery efforts increasingly difficult. SOL has also lost ground below a previous horizontal support at $97.76, adding to the resistance faced by any attempted rebounds.
Momentum indicators reinforce the bearish outlook. The daily Relative Strength Index (RSI) is around 28, deep in oversold territory, reflecting intense selling. While such readings sometimes precede rebounds, analysts caution that oversold conditions alone do not guarantee a reversal.
If buyers are able to reclaim the $97.76 resistance, attention could turn to the $100 psychological level and, further ahead, the 50-day EMA at $103.81, which would represent a shift toward a more positive technical outlook.
For now, if SOL fails to hold support near $88.42, the next significant target for sellers sits around $78.35, raising the risk of an extended decline if bearish momentum persists.
