Despite achieving 13 consecutive days of inflows for its spot exchange-traded funds, Solana’s native cryptocurrency SOL has plunged to a five-month low, breaching crucial technical support levels. The divergence between sustained institutional investment products and declining market performance has raised concerns among traders about potential further downside toward the $100 psychological barrier.
The consistent ETF inflows, typically a bullish indicator for digital assets, have failed to counteract the broader market pressures affecting SOL’s valuation. Technical analysts note that the asset has broken through multiple key support zones that previously provided stability during market corrections. This breakdown suggests weakening buyer confidence despite the positive ETF momentum.
Market observers attribute the price-performance disconnect to several factors, including overall cryptocurrency market volatility, shifting investor sentiment toward alternative assets, and profit-taking activities following SOL’s earlier 2024 gains. The current technical setup indicates that unless buying pressure intensifies significantly, the path of least resistance may lead toward testing the $100 support level.
Traders are closely monitoring whether the sustained ETF interest will eventually translate into price stabilization or if broader market conditions will continue to dictate SOL’s short-term trajectory. The coming trading sessions will prove critical in determining whether current support levels can hold or if further depreciation toward triple-digit valuations becomes inevitable.
