Solana Slides 5% to $145 as Technical Weakness Overshadows ETF Demand
Solana (SOL) broke through key support levels on Wednesday, falling 5.24% to $145.43, despite strong trading volumes and sustained institutional inflows into spot ETFs. The decline erased gains made over the previous week and marked a sharp technical reversal.
Trading volume surged 13.23% above the weekly average, highlighting intensified selling pressure from institutional participants. The drop accelerated in the final trading hours, with SOL tumbling from $153.03 to $145.31 amid cascading stop-loss orders. Hourly closes consistently posted new lows, culminating in a steep final hour drop from $148.61 to $145.29.
ETF Inflows Contrast With Weak Network Activity
The sell-off occurred despite positive fundamental signals. Spot Solana ETFs extended their inflow streak to eleven consecutive days, led by Bitwise’s BSOL, which now manages $369 million in assets.
However, on-chain activity points to weakening network fundamentals. Daily active addresses sank to a 12-month low of 3.3 million, a sharp decline from January’s peak of over 9 million. Enthusiasm from memecoins, which previously fueled network growth, has largely dissipated. The disconnect between institutional demand and declining network engagement created technical pressures that resolved downward.
Technical Outlook Suggests Further Weakness
- Support/Resistance: The $150 support level has been decisively broken; the next key floor lies in the $142-$144 zone. Resistance now forms near $157.25.
- Volume: Exceptional volume of 2.49 million (157% above average) indicates strong institutional distribution.
- Chart Patterns: SOL shows a clear bearish structure, with lower highs from the $157.25 peak and accelerating downside momentum.
- Targets & Risk: Immediate downside target is $142-$144, with further potential weakness toward $135-$140 if selling continues.
