Solana (SOL) Under Pressure Despite ETF Inflows as Traders Watch $110 Support Zone

Overview

Solana (SOL) is currently facing significant downward pressure as it approaches the end of 2025, struggling to regain momentum following a notable decline earlier in the quarter. Despite signs of institutional interest, the token is caught in a precarious position, leading traders to closely monitor key support levels.

Current Situation

Solana has experienced a sharp 39% decline in the fourth quarter, resulting in trading activity within the low-$120 range. Traders are particularly focused on the sustainability of key support levels, especially as network activity has diminished. The number of active users on the Solana network plummeted from approximately 30 million in late 2024 to under one million by the fourth quarter of 2025. This decrease has led to a decline in fee revenue and a corresponding drop in demand for the token.

The overall cryptocurrency market has also faced challenges, with total market capitalization slipping toward $2.9 trillion and significant withdrawals from digital asset investment products. In one week alone, nearly $1 billion was withdrawn. Technical indicators for SOL point to a bearish trend, with a negative MACD reading and an RSI below neutral levels. Repeated failures to reclaim the $126–$130 price zone have triggered long liquidations among traders. Analysts have expressed concerns that if SOL loses the $120 support level, it could face a deeper decline toward the $110 mark, which is increasingly viewed as a crucial downside target.

Institutional Interest and ETF Inflows

Despite the bearish price action, Solana-linked exchange-traded products have continued to attract significant capital, with recent data indicating net inflows exceeding $69 million. This trend is noteworthy, especially when compared to Bitcoin and Ethereum products, which have experienced net outflows. The divergence in fund flows suggests that some institutional investors are accumulating Solana at lower price points, even as short-term traders exhibit caution.

Market observers have noted that this gap between institutional inflows and spot price may reflect differing investment horizons. While institutions appear to be betting on Solana’s long-term potential as a platform for payments, tokenization, and high-throughput applications, the spot market remains constrained by technical resistance and declining retail activity.

Cross-Chain Developments

Recent discussions among prominent figures in the crypto space, such as Charles Hoskinson and Anatoly Yakovenko, have reignited interest in interoperability. Both founders have indicated a willingness to explore the possibility of a cross-chain bridge between Solana and Cardano. Although these discussions are still in the early and informal stages, they highlight ongoing efforts to enhance liquidity and utility across different ecosystems.

Traders are currently fixated on immediate price levels rather than long-term developments. Maintaining a position above $120 could help stabilize market sentiment, but a clear breach below this level would likely shift focus to the $110 support zone.

From author

The current landscape for Solana presents a complex interplay between declining network activity and growing institutional interest. While the bearish technical indicators raise concerns about immediate price action, the continued inflows into Solana-linked products suggest that some investors remain optimistic about its long-term potential. The situation underscores the importance of monitoring both on-chain metrics and market sentiment as 2025 draws to a close.

Impact on the crypto market

• Solana’s price struggles illustrate the broader challenges faced by the cryptocurrency market, particularly in terms of user engagement and investor sentiment.
• Institutional inflows into Solana-linked products may signal confidence in the token’s future, contrasting with short-term bearish trends.
• The potential for cross-chain developments could play a significant role in shaping Solana’s utility and market position moving forward.
• The focus on key support levels, particularly $120 and $110, could influence trading strategies and market dynamics as traders react to price movements.
• Overall market sentiment remains cautious, reflecting broader concerns about liquidity and the sustainability of current price levels across various digital assets.