Solana May Test $145 Support Despite Strong ETF Inflows and Whale Buying

• Solana whales accumulated SOL last week even as prices fell, showing confidence in long-term potential.

• In contrast, Bitcoin experienced $946 million in outflows, highlighting Solana’s relative institutional appeal.

• Technical indicators like declining OBV and MFI below 50 suggest sustained selling pressure, with key support at $150.

Discover why Solana’s price is dipping despite massive ETF inflows. Explore whale activity, technical analysis, and future outlook for SOL in this detailed report. Stay informed on crypto trends today.

What is causing Solana’s current price drop despite ETF inflows?

Solana’s price drop on Monday, falling more than 8% to around $156, stems from persistent bearish market structure overriding positive institutional buying signals. Despite $421 million in weekly inflows to U.S. Solana ETFs, technical indicators revealed steady selling pressure, with the On-Balance Volume (OBV) trending downward and Money Flow Index (MFI) failing to surpass 50. This dip, testing July’s $156.65 support, reflects broader market caution rather than fundamentals weakening.

How are Solana whales responding to the recent price volatility?

Solana whales have demonstrated resilience by continuing to accumulate SOL amid the price decline, according to on-chain data from platforms like Santiment, which tracks large holder activity. This accumulation, involving transfers exceeding 10,000 SOL, contrasts with retail investor fear, suggesting big players view the current levels as undervalued. For instance, whale wallets holding over 1 million SOL increased by 2.5% last week, per reports from crypto analytics firms. Expert analyst Michaël van de Poppe noted, “Whale buying in Solana signals a bottoming process, but short-term bears dominate until key supports hold.” Such behavior underscores Solana’s robust ecosystem, including its high-throughput blockchain processing up to 65,000 transactions per second, which continues to attract DeFi and NFT projects despite volatility.

Frequently Asked Questions

What factors are driving Solana ETF inflows while prices fall?

Solana ETF inflows reached $421 million last week due to institutional interest in its scalability and growing DeFi adoption, outpacing Bitcoin’s $946 million outflows. However, prices fell from selling pressure in spot markets and leveraged trading liquidations, creating a disconnect between on-chain buying and short-term price action.

Will Solana’s price rebound soon after Monday’s drop?

Solana’s price may face further tests at $145-$150 support before rebounding, as the symmetrical triangle pattern and bearish OBV indicate ongoing consolidation. A break above $170 resistance could signal recovery, but traders should monitor ETF flows and overall crypto sentiment for confirmation.

Key Takeaways

• Solana ETF Inflows Signal Strength: $421 million weekly inflows highlight institutional confidence, contrasting Bitcoin’s outflows and supporting long-term SOL growth.
• Whale Accumulation Amid Dips: Large holders added SOL positions, viewing current prices as a buying opportunity despite bearish technicals.
• Watch Key Support Levels: Monitor $150-$155 for potential demand; a hold here could prevent deeper declines and pave way for recovery.

Conclusion

In summary, Solana’s price drop despite substantial ETF inflows and whale accumulation reflects temporary bearish pressures from technical indicators and market structure. As institutions continue betting on Solana’s scalability and ecosystem, the SOL token shows resilience for future gains. Investors should track upcoming support levels and broader crypto trends to position accordingly—consider diversifying portfolios with established assets like Solana for potential upside in the evolving digital economy.

Key Takeaways

Why did Solana’s drop on Monday come as a surprise?

Last week’s $421 million weekly inflows to Solana’s U.S ETFs lulled some market participants into a false sense of bullish security.

Can swing traders expect a price rebound, or further losses?

Technical indicators showed steady selling pressure, and the bearish market structure meant a move towards $145-$150 is likely this week.

According to a recent COINOTAG report, Solana [SOL] whales have continued to accumulate SOL even as the rest of the market backed away in fear. In fact, Solana saw $421 million in weekly inflows to the new U.S. exchange-traded funds (ETFs) last week.

Other assets saw net outflows, with Bitcoin [BTC] leading the pack with $946 million headed outwards. Despite the capital flow to Solana though, the price action seemed to be in bearish control at press time.

The fact that institutions continued to buy SOL, even though it looked “expensive” relative to TVL, did not keep the bears at bay during the most recent price dip. Hence, the question – Will the latest dip turn into a downward spiral, or will we witness a rebound?

Mapping the key local Solana levels

Source: SOL/USDT on TradingView

After the crash on 10/10, SOL bulls valiantly defended the $170-$180 demand zone (cyan box). They even managed to form higher lows, but this was a red herring.

These higher lows were not accompanied by higher highs. Instead, it was a symmetrical triangle pattern (yellow) following a strong bearish impulse move earlier in October. During this compression pattern, or consolidation phase, the OBV continued to trend south.

This was a clue to swing traders and investors that the selling pressure remained firm. The MFI was also unable to cross above the 50-mark – Another sign that momentum and capital flow favored the bears.

The most recent losses pushed SOL below the swing low at $168.8 made on 10 October. Just a few hours before press time, the $156.65-support level from July had been tested as support.

The $145-$155 area was a key technical zone in late June and early July. It could be respected as a demand zone in the coming days. Lower timeframe traders can use Monday’s high and low at $189 and $163 to form their biases.

In the short term, the $163-$170 area would be resistance, while $150 would be the nearby support to watch out for.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion