Solana (SOL) recently experienced an unexpected price dip, leaving many market participants questioning its immediate trajectory despite significant capital inflows into its U.S. Exchange-Traded Funds (ETFs). This paradoxical movement has sparked debate: Is SOL heading for a deeper decline, or can investors anticipate a rebound?
The Inflow Anomaly
Last week, Solana remarkably attracted $421 million in weekly inflows to its new U.S. ETFs, a stark contrast to other major assets like Bitcoin, which saw substantial net outflows. This robust institutional interest, with "whales" reportedly accumulating SOL even as its price appeared "expensive" relative to Total Value Locked (TVL), initially lulled some into a bullish security. However, despite this strong capital influx, Solana's price action remained firmly under bearish control, signaling a significant disconnect between investor confidence and market performance.
Decoding Bearish Technical Signals
The recent price defense by SOL bulls around the $170-$180 demand zone proved to be a "red herring." Technical analysis revealed a concerning symmetrical triangle pattern following an earlier bearish impulse, indicating a consolidation phase characterized by persistent selling pressure. The On-Balance Volume (OBV) trended southward, and the Money Flow Index (MFI) struggled to cross above the 50-mark, all strongly suggesting that momentum and capital flow favored the bears. These indicators collectively pointed towards a likely continuation of the downward trend, pushing SOL below key swing lows.
Key Price Levels to Monitor
Following these bearish signals, Solana's price dipped below the $168.8 swing low and tested the $156.65 support level. Traders and investors are now closely watching the $145-$155 area, which served as a crucial technical zone in previous months and could emerge as a demand zone in the near term. For short-term action, the $163-$170 range is expected to act as resistance, while the $150 mark represents a critical nearby support level. The current market structure implies that a move towards the $145-$150 range is a strong possibility in the coming days, challenging any immediate hopes for a significant rebound.
