Solana (SOL) is experiencing growing downside risks, with analysts warning that the token could slip below $120 if ETF inflows continue to slow. Despite recent optimism surrounding institutional demand, the pace of capital entering Solana-focused ETFs has softened, indicating a potential cooling in market sentiment. Traders note that SOL remains highly sensitive to inflows and outflows, and any slowdown in buying pressure could trigger short-term weakness, challenging the token’s recent support levels.
ETF Slowdown Highlights Vulnerability in SOL
Recent data shows that Solana ETF s are attracting less inflow than in previous weeks, signaling that some investors may be reassessing their exposure. The reduced ETF activity coincides with softening social sentiment, as crypto communities and market indicators show less bullish enthusiasm. Analysts highlight that SOL’s recent rallies were largely ETF-driven, meaning that slower inflows could leave the price exposed to corrections. Traders are watching $120 closely, with some suggesting that a breach could trigger stop-loss cascades and additional short-term selling pressure.
SOL’s technical indicators are also showing cautionary signs. Relative strength index (RSI) trends point toward diminishing momentum, suggesting that bullish pressure may be waning. Meanwhile, trading volumes have plateaued, indicating that buyer conviction is not keeping pace with recent highs. Analysts warn that even a modest pullback below $120 could attract speculative sellers, further pressuring the token and testing key support zones.
Investors are advised to monitor inflows, ETF sentiment, and trading volumes closely. Institutional demand remains a critical factor in determining short-term direction, and without renewed inflows, SOL may face a period of consolidation or decline. Market watchers note that a return to strong ETF activity could reverse bearish pressure, but in the absence of that, the token may remain vulnerable to downward swings.
The information presented in this article is for informational purposes only and should not be interpreted as investment advice. The cryptocurrency market is highly volatile and may involve significant risks. We recommend conducting your own analysis.