Solana’s exchange-traded funds (ETFs) attracted just under $1 million in net inflows for the second week in a row, contrasting sharply with Bitcoin’s $75.67 million and Ethereum’s $105.44 million during the same period. This stark disparity underlines a clear preference among institutional investors for more established cryptocurrencies, casting doubt on near-term confidence in SOL.
Despite a 78% surge in futures trading volume to $5.37 billion over 24 hours, Solana’s Open Interest declined slightly to $4.77 billion. This unusual mix suggests traders are rapidly closing positions rather than opening new ones, hinting at waning conviction. Further evidence comes from funding rates, which have slipped into slightly negative territory, around 0.0023%. Traders seem more inclined to pay to maintain short positions, reflecting growing bearish sentiment in the derivatives market.
The price action also echoes this cautious mood. SOL continues to trade below its 50- and 200-period EMAs at $76.32 and $76.51 respectively, both acting as immediate resistance levels that have limited recent recovery attempts. The Relative Strength Index holds near 49, indicating neutral momentum but lacking bullish signals strong enough to overturn the correction trend from early July.
Institutional funds are clearly favoring Bitcoin and Ethereum, leaving Solana in their shadow. For investors and traders, these dynamics spotlight the challenges SOL faces breaking out of its current corrective phase. The combination of subdued ETF interest and deteriorating futures sentiment raises the probability of further downside pressure, potentially testing the $70 support level. Market participants should watch flows and open interest closely to gauge whether this cautious stance intensifies or reverses.
This material is for informational purposes and does not constitute financial advice.
