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Solana's newly launched ETF continues to attract large inflows, but the weak market structure may further pressure Solana's price to $120. The spot Solana exchange-traded fund (ETF) continues to attract capital inflows despite a sharp retracement in currency prices. Since their launch, these products have accumulated net inflows of US$476 million and have maintained net inflows for 17 consecutive days, even though the price of Solana fell by nearly 30% from US$186 to US$130. Key information:
Spot SOL ETF continues to attract investor interestSince its launch, Bitwise’s BSOL ETF has captured $424 million, accounting for 89% of cumulative inflows, underscoring the fund’s dominance in driving demand. On November 19, BSOL recorded new net inflows of $35 million, its third largest single-day inflow and the largest since November 3. ETF analyst Eric Balchunas also highlighted the launch of the 21Shares Solana ETF, which launched the same day with $100 million in assets under management.  According to Balchunas, the spot SOL ETF has attracted $2 billion in inflows overall, attracting inflows on an almost daily basis despite the market's current state of "extreme fear." SOL continues to struggle, selling pressure intensifiesSolana briefly moved above Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) on Thursday, forming higher highs and lower structures on the one-hour and four-hour charts. But its rebound was quickly capped by strong resistance at the 50-EMA, and the price fell back to $132.  Futures data paints a cautious picture. During SOL’s rise from $130 to $140, composite open interest (OI) remained flat or declined slightly, indicating a lack of fresh long participation in the rally. However, when the price started to consolidate around $140, OI surged, indicating that new positions, possibly bearish, were being established at the resistance. Meanwhile, futures cumulative volume difference (CVD) fell sharply during the pullback, while spot CVD was lower throughout the day, indicating continued net selling by both derivatives traders and spot holders. At the same time, even if SOL falls back to $130, funding rates remain high, suggesting that leveraged bulls remain crowded and vulnerable to further declines.  Data suggests that the bullish momentum could easily fade if $140 is not recovered quickly. The next key downside price target is located at $120, where liquidity and prior demand converged on the daily orders block. A decisive rally above $140 would invalidate the bearish pattern, but until then, sellers remain firmly in control. |
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