Solana Price Declines – $60 Million ETF Inflows Signal Possible SOL Rebound

The price of Solana (SOL) has dipped to levels not seen since June, yet institutional interest remains strong. Recent ETF inflows surpassing $60 million hint at potential recovery. With solid open interest and improved funding rates, traders may be preparing for an upturn.

Key Takeaways

SOL ETFs have consistently recorded inflows, surpassing $60 million, contributing to total assets near $541 million.
Open Interest (OI) stands firm around $2.95 billion, with funding rates showing a positive trend.
Despite the drop, the market sentiment is not as negative as price charts suggest, indicating institutional support.
Traders might be positioning themselves for potential price movements ahead.

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Strong Demand for ETFs

Solana ETFs have shown a steady flow of investments even as the asset's spot prices recently hit multi-month lows. Daily net inflows have consistently remained positive, with notable peaks above $60 million recorded on October 28 and November 3. As of now, total net assets are approximately $541 million, demonstrating that investor trust is holding firm.

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While recent days have seen a slight thinning in inflows, they have not reversed, indicating that overall demand persists despite broader market setbacks. Institutional interest in Solana remains strong, and AMBCrypto previously mentioned that VanEck may soon launch its long-anticipated Solana spot ETF after filing an 8-A form with the SEC.

Shifting Price Momentum

Despite the solid inflows, SOL's weekly price chart reveals a weakening momentum. The altcoin has fallen below its 50-week exponential moving average (EMA) of $176, testing its 100-week EMA near $157, a point last approached in June. Increased selling volume over the past two weeks suggests sustained downward pressure.

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As of the latest update, the Relative Strength Index (RSI) is nearing an oversold region, and the Moving Average Convergence Divergence (MACD) shows an ongoing bearish trend with deeper red bars. To stabilize its long-term outlook, SOL needs to reclaim levels in the mid-$150s.

More Stable Derivatives Data

On a positive note, derivatives data is showing signs of stabilization.

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The aggregated Open Interest (OI) has remained steady around the $2.94 to $2.95 billion range throughout the week, indicating resilience against liquidation, despite softening spot prices. This consistent OI suggests that traders are not rapidly unwinding their leverage positions. Moreover, funding rates, which were largely negative, have moved back above zero and are around 0.0084 at the time of reporting. This could signal a potential return to long positions, as traders appear willing to re-enter rather than further reduce their exposure.