Whales Invest $421 Million in Solana – Why Didn't SOL's Price Rise?

Last week, Solana (SOL) attracted an impressive $421 million in net inflows, outpacing all other cryptocurrencies. While institutional investors are investing heavily in SOL, retail traders appear to be more cautious, leading to questions about why the price hasn’t reflected this influx.

Key Takeaways

Solana saw a remarkable $421 million in new investments last week, leading among cryptocurrencies.
Technical indicators suggest bearish market sentiment in the short term.
Institutional investors, also known as "whales," are accumulating Solana while retail investor activity remains limited.

SOLANA WHALES

Solana Defies Outflow Trends

While the overall digital asset market experienced $360 million in outflows last week, Solana's performance was quite the opposite. According to data from CoinShares, SOL enjoyed $421.1 million in weekly inflows, the highest of any crypto asset, while Bitcoin (BTC) faced $946 million in withdrawals, significantly influencing the total outflows.

solana whales

Source: CoinShares

The primary outflows originated from the U.S., with $439 million exiting the country. It's noteworthy that Solana's inflows surpassed those of Ethereum (ETH), which saw $57.6 million. This shift suggests that significant investors are moving capital away from Bitcoin toward alternative cryptocurrencies. The substantial inflows into Solana are mainly fueled by recently launched Solana ETFs attracting fresh capital.

Strong Inflows but Soft Prices

Recent data indicates that inflows into Solana ETFs remained robust over the past week, with notable spikes of around $70 million each. This surge pushed total ETF net assets above $500 million; however, the price of SOL did not exhibit similar growth. Throughout this period, SOL lingered around $164, even trending slightly downward.

Source: SoSoValue

Simultaneously, DeFiLlama reported Solana's total value locked (TVL) at $10.59 billion, reflecting a 3% decline within 24 hours. This indicates that while capital is entering through ETFs, it may be doing so at a pace faster than the on-chain markets can respond.

Source: DeFiLlama

Big investors are making their moves, even as retail demand appears to wane.

Technical Indicators Are Bearish

At the time of writing, Solana's price hovered around $159, indicating that sellers were still dominant in the market. The Exponential Moving Average (EMA) lines remain positioned above the price, signaling continued downward pressure. The Relative Strength Index (RSI) is nearing oversold territory, suggesting potential short-term shifts.

solana

Source: TradingView

Despite the substantial inflows into Solana ETFs, spot traders have not yet reversed the current trend. The technical data presents a different narrative than the inflows: while whales continue to accumulate Solana, the wider market has been slow to follow suit. Should the RSI drop further, there could be a short-term relief bounce, but as it stands, market momentum remains weak.