Solana SOL continued to struggle on Monday, trading around $94.32 after extending its weekly losing streak to five consecutive weeks.
The cryptocurrency remains under pressure as institutional investors pull money from Solana exchange-traded funds (ETFs), while on-chain indicators point to weakening demand.
According to SoSoValue, spot SOL ETFs recorded $71.47 million in net outflows last week, their largest weekly withdrawals since launching.
The latest figures mark four consecutive weeks of negative flows, raising concerns about institutional appetite for the cryptocurrency.
The technical picture offers little encouragement for buyers either. SOL has slipped below several important moving averages, with momentum indicators suggesting sellers remain in control.
Unless demand improves, Solana could face another round of losses in the coming sessions.
Solana ETFs record largest weekly outflows since launch
Institutional investors appear to be reducing their exposure to Solana as the cryptocurrency struggles to recover from its recent downturn.
Data from SoSoValue shows that U.S. spot SOL ETFs recorded $71.47 million in net outflows last week, the largest weekly withdrawal since the investment products began trading.
More concerning for investors is the persistence of the selling. Solana ETFs have now recorded four consecutive weeks of net withdrawals since early October, suggesting that the latest outflow is not an isolated event.
The trend comes as SOL has struggled to maintain support above key price levels, with five straight weeks of losses weighing on investor confidence.
ETF flows are an important gauge of institutional demand because they reflect changes in investors’ exposure to the underlying cryptocurrency through regulated investment products.
Sustained withdrawals can add to bearish sentiment, particularly when they coincide with falling prices and weakening trading activity.
For now, the absence of a meaningful recovery in ETF demand leaves SOL vulnerable to further selling pressure.
Solana on-chain data points to growing selling pressure
The weakness in Solana’s ETF market is also reflected in its on-chain and trading activity.
According to CryptoQuant’s market summary, Solana’s spot and futures markets are showing signs of increasing caution, with large whale orders and sell-side dominance emerging across both markets.
Whale activity is closely monitored because large investors can significantly influence short-term price movements, especially during periods of reduced liquidity.
The presence of substantial sell orders suggests that some major market participants may be reducing their exposure or positioning for further declines.
CryptoQuant’s data also indicates overheating conditions in Solana’s spot market. Such conditions can point to an imbalance in trading activity and increase the risk of sharp price swings, particularly when selling pressure is already elevated.
The combination of large whale orders, seller dominance, and weak institutional flows paints a challenging picture for SOL.
Solana technical outlook: SOL falls below key moving averages
Solana is trading around $94.3 on Monday, remaining below its major daily Exponential Moving Averages (EMAs) as bearish momentum continues to dominate.
The cryptocurrency has slipped below its 50-day EMA at $103.81, 100-day EMA at $99.96, and 200-day EMA at $98.08.
Trading below all three moving averages suggests that SOL’s short-term recovery attempts remain weak, with several technical barriers standing in the way of a sustained rebound.
The price has also fallen below the previous horizontal resistance level at $97.76, adding another obstacle for buyers.
Momentum indicators support the bearish outlook. The daily Relative Strength Index (RSI) is hovering near 28, within the oversold territory.
This suggests that selling pressure has become intense, although it does not necessarily mean an immediate recovery is imminent.
Meanwhile, the Moving Average Convergence Divergence (MACD) remains in negative territory despite showing signs of a modest improvement.
The indicator suggests that bearish momentum has not fully subsided, leaving SOL exposed to further downside risks.
For Solana to begin reversing its recent losses, buyers will first need to reclaim the $97.76 resistance level.
A sustained move above this barrier could open the door for a test of the 200-day EMA at $98.08, followed by the 100-day EMA at $99.96.
The $100 psychological level could also become an important battleground between buyers and sellers.
If SOL manages to break above these levels, attention could shift toward the 50-day EMA at $103.81, which represents a stronger resistance zone.
A decisive recovery above $103.81 would improve the short-term technical outlook and suggest that buying momentum is returning.
Beyond that, the next major horizontal resistance sits around $122.76, although reaching that level would require a considerably stronger recovery.
Until SOL reclaims its key moving averages, however, rallies may continue to attract selling pressure.
On the downside, Solana’s first significant support lies around $88.42, near a previously broken ascending trendline.
A decline toward this level would extend the cryptocurrency’s recent losing streak and put buyers under additional pressure.
If the $88.42 support fails to hold, SOL could fall toward the next major horizontal support at $78.35.
That level may attract renewed buying interest, particularly from traders looking for a potential rebound after an extended selloff.
However, a move toward $78.35 would represent a substantial decline from current prices and further weaken Solana’s broader technical structure.
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