Solana Holds Firm Despite 99% Drop in ETF Inflows

Solana (SOL) is currently holding steady around $120 after a string of four positive trading sessions, but the cryptocurrency faces challenges from a significant drop in exchange-traded fund (ETF) inflows. Despite the decline, SOL remains above key moving averages on the four-hour chart, maintaining a mild bullish technical outlook. However, the price is nearing the boundaries of a narrowing triangle pattern, leaving traders on alert for a potential breakout.

ETF inflows for Solana plunged nearly 99% last week, according to data from CoinGlass. The funds saw just $2.43 million in net inflows, compared to $188.22 million the previous week. While this marks the 14th consecutive week of positive inflows, the sharp reduction suggests a slowdown in fresh allocations. The data does not capture all SOL investment activity, as it excludes decentralized markets and other investment channels.

Despite weaker ETF demand, Solana’s network activity remains strong. On Sunday, the platform’s decentralized exchange volume surpassed the combined volume of Ethereum mainnet, Ethereum Layer-2 networks, and Hyperliquid. Additionally, tokenized-stock trading volume on Solana exceeded $4.4 billion, indicating growing interest in blockchain-based exposure to traditional equities.

Technically, SOL’s next move hinges on whether buyers can defend nearby support levels and overcome resistance. The cryptocurrency is consolidating within a triangle pattern, with immediate support around $118.71 to $119.25 and resistance near $123. A confirmed breakout above $124.95 could target $132.87, but sustained trading above resistance is needed for stronger confirmation.