Solana slid below $70 on Friday, extending its losing streak to four straight sessions, as investors weighed weakening price action against signs of growing institutional involvement in Solana-linked products. While ETF-related flows and new regulatory filings point to increasing interest from larger players, derivatives positioning and liquidation activity suggest the market remains cautious and still leaning bearish.
Key takeaways
- Price move: Solana fell below $70, maintaining a four-day downtrend.
- Catalyst: Continued ETF inflows and an amended filing for a Solana ETF were offset by declining futures open interest and net-long liquidations.
- Technical implication: A descending wedge on the weekly chart offers a possible setup for a rebound, but key resistance levels remain overhead.
- Market message: Institutional demand appears to be strengthening even as retail-style speculative activity fades.
What drove the move
Despite Solana’s price weakness, data indicates that institutional engagement has continued to build. According to Coinglass data cited by the report, SOL-focused exchange-traded funds recorded $2.99 million in inflows on Thursday, lifting weekly inflows to $7.11 million. Monthly flows remain slightly negative at around $2.00 million, but the report noted that consistent inflows could help the category return to net positive.
The report also pointed to product development by large asset managers. It said Morgan Stanley submitted an amended S-1 filing to the U.S. Securities and Exchange Commission for its Solana-focused ETF, signaling continued progress toward regulated access for institutional investors.
Market reaction: futures and liquidations stay bearish
While ETF-related developments suggest steady institutional interest, trading signals in derivatives remained uneven. CoinGlass data cited by the article showed Solana futures open interest declined to $4.79 billion from $5.18 billion earlier in the week. A drop in open contracts typically reflects reduced speculative exposure and lower short-term trading appetite.
Liquidation data further underscored the bearish tilt. The report said that over the past 24 hours, long liquidations totaled approximately $15.02 million, compared with $1.52 million in short liquidations. That skew indicates downside pressure has been more costly for long positions, even as broader participation appears to be fragmenting.
Still, the picture is not purely negative. The report highlighted stronger ecosystem engagement tied to tokenized real-world assets. According to SolanaFloor, the network hosts more than 285,000 RWA holders after activity connected to the tokenized SpaceX IPO, positioning Solana as a notable chain in that segment.
Solana’s chart: wedge structure, but resistance remains
Technically, the report described a market structure dominated by bearish conditions. It said the SOL/USD four-hour chart remains “extremely bearish,” with Solana still in a broader downtrend after reversing from a September peak near $253.
On the weekly view, the report pointed to a descending wedge pattern, which it said often precedes bullish reversal conditions if price breaks upward. However, it cautioned that near-term downside risk remains elevated until key levels are reclaimed.
At the time of writing, the article stated Solana was trading at $68. It cited a major support area associated with a fair value gap (FVG) between $46.90 and $51.12, created in November 2023. Before that zone, the report said bulls would likely need to defend support near $60.13 and the June 6 low of $59.16.
For buyers to regain control, the report indicated that Solana would need to reclaim $75.63 first. It also said stronger confirmation would come with a weekly close above an overhead resistance trendline near $83.50, which could validate a broader reversal from the current bearish structure.
Momentum indicators were described as mixed. The report said the four-hour MACD shows weakening bearish momentum as histograms contract near the signal line. The relative strength index (RSI) was reported around 47, suggesting subdued momentum without a clear reversal signal.
Bigger picture: institutional interest vs. spot-and-derivatives stress
The diverging signals—ETF inflows and amended filings on one side, and downside liquidation pressure plus falling open interest on the other—reflect an environment where institutional product development is moving forward, but market positioning remains fragile. In such setups, investors often look for confirmation from price levels rather than fundamentals alone, especially when derivatives data indicates longs are still being pressured.
Next, traders and investors are likely to monitor whether Solana can hold the near-term support levels around the $60 area and whether it can reclaim $75.63. On the macro calendar, the broader direction for risk assets may also hinge on upcoming market-moving catalysts such as Federal Reserve commentary and scheduled economic data, alongside any further regulatory updates tied to Solana-linked ETF filings.
