Solana (SOL), a leading cryptocurrency in the blockchain community, has recently faced significant challenges as its price slipped to $130. These declines have triggered institutional outflows from Solana-focused exchange-traded funds (ETFs), ending what had been a four-week streak of inflows. This shift signals a critical moment for the digital asset market, especially for investors closely following Solana’s performance.
First Outflows in Four Weeks: What’s Happening?
Solana ETFs recorded their first net outflows in a month, a notable change in sentiment among institutional investors. The last time such outflows occurred was December 3, 2025, underscoring the significance of this development. Many investors are reassessing their positions as Solana struggles to recover after a failed attempt to sustain its upward momentum.
Typically, ETF flows serve as a barometer for long-term investor confidence rather than short-term volatility. Solana’s inability to maintain key technical levels has led to capital rotating out of its ETFs, further adding to selling pressure and creating obstacles for price stability.
On-Chain Data Shows Signs of Stress
Analyzing on-chain metrics paints a worrisome picture. Over the past four days, net realized profit/loss data indicates that investors are recording continuous losses. This trend suggests growing panic and stress among holders, as recent gains have been erased by declining prices. In December 2025, Solana endured prolonged downside pressure, with only minor relief seen in early January 2026 before losses mounted again.
Underwater holders are now exiting their positions, increasing the supply of SOL in circulation and accelerating its downward trajectory. Currently trading at approximately $133, Solana has confirmed a bearish pattern—an ascending wedge breakdown—that projects further declines toward $128 in the short term.
Can Solana Recover?
Despite the bearish momentum, a potential upside recovery remains possible if ETF outflows stabilize. Recovery would likely see Solana reclaim $136 as a key support level, invalidating the current negative trend. If this threshold is reestablished, a path toward $146 could open, driven by renewed confidence and restored momentum.
For those considering Solana-related investment opportunities, it’s vital to remain informed about market conditions. A practical tool for staying updated is Coinbase, a trusted trading platform where you can track Solana’s performance and make timely decisions.
Conclusion
The recent outflows and price pressures reflect a testing phase for Solana, but this doesn’t eliminate the potential for a recovery. Institutional sentiment, technical levels, and on-chain metrics will play vital roles in determining its next move. As always, investors should conduct thorough research and stay updated for informed decision-making in this volatile market.
