- Institutional investors continue pouring money into Solana-focused investment products despite recent price weakness.
- Solana’s ecosystem now boasts more than 285,000 RWA holders, boosted by the tokenized SpaceX IPO.
- Technical indicators remain mixed, but a breakout above key resistance levels could shift sentiment quickly.
Solana’s price slipped below the $70 mark on Friday, extending a losing streak that has now stretched into a fourth consecutive trading day. While the market has largely focused on the recent decline, a different story appears to be unfolding behind the scenes. Institutional interest in Solana continues to build steadily, and retail participation within the network remains surprisingly resilient despite softer price action.
Institutional Investors Continue Accumulating Solana
The broader crypto market may not be paying much attention, but institutional investors are quietly increasing their exposure to Solana. Recent data shows that Solana-focused exchange-traded funds attracted nearly $3 million in inflows on Thursday alone. That pushed total weekly inflows to more than $7 million, helping offset recent monthly outflows and keeping the longer-term trend largely intact.
If capital continues flowing into these products over the coming weeks, Solana could return to positive monthly territory and potentially extend its impressive streak of consecutive monthly inflows. Adding further fuel to the narrative, Morgan Stanley submitted an amended S-1 filing with the U.S. Securities and Exchange Commission for its Solana-focused ETF, known as MSOL. While approval remains uncertain, the filing itself highlights growing confidence from traditional financial institutions.
Retail Sentiment Sends Mixed Signals
Retail demand presents a more complicated picture. Activity within Solana’s derivatives market has weakened noticeably, suggesting traders have become more cautious in the short term. Open interest in SOL futures has fallen from roughly $5.18 billion earlier in the week to around $4.85 billion, indicating that some speculative positions have been closed.
Liquidation data tells a similar story. Long traders absorbed over $13 million in losses during the last 24 hours, significantly outweighing liquidations on the short side. That imbalance points to continued selling pressure across leveraged markets. Still, not everything is bearish. On-chain activity continues to expand, particularly within the tokenized real-world asset sector. Following the launch of SpaceX’s tokenized IPO on Solana, the network reportedly became the largest blockchain for RWA holders, surpassing 285,000 participants. That’s a pretty notable milestone, especially during a period when price performance remains under pressure.
Can Solana Reverse Course?
From a technical standpoint, Solana remains trapped within a broader downtrend that began after its rejection from September’s peak near $253. The weekly chart continues to form a descending wedge pattern, a structure that often precedes bullish breakouts even though it develops during periods of weakness.
For buyers to regain control, Solana first needs to reclaim resistance near $75.63. A weekly close above the descending trendline around $83.50 would provide much stronger confirmation that a larger trend reversal is underway. Until then, traders are likely to remain cautious.
Momentum indicators currently lean slightly bearish. The MACD continues drifting toward a potential bearish crossover as positive histogram bars shrink. Meanwhile, the Relative Strength Index sits near 33, reflecting weak but not extreme downside momentum. In other words, selling pressure remains present, though the market has not fully capitulated.
Key Support Levels Remain Critical
If Solana continues lower, traders will be watching the lower boundary of the descending wedge near the June low around $60.13. Beneath that sits a significant fair value gap between roughly $46.90 and $51.12, which could act as a magnet for price if bearish momentum accelerates.
For now, Solana finds itself caught between growing fundamental demand and lingering technical weakness. Institutions continue adding exposure, on-chain adoption keeps expanding, and the ecosystem remains active. The big question is whether those fundamentals can eventually overpower the bearish chart structure and spark the next major move higher.
