Solana Price Forms Alarming Patterns as SOL ETF Inflows Drop 80%

Solana price remained on edge on Saturday as the broader sentiment in the crypto market worsened. SOL token was trading at $120, down sharply from the September high of $252.

It has formed several alarming patterns that may trigger more downside in the coming weeks or months.

Solana Price Technical Analysis Points to More Downside

The daily timeframe chart shows that the SOL has been in a strong downward trend in the past few months. It’s a move that has coincided with the recent crypto market crash that has affected Bitcoin and other altcoins. It has also coincided with the falling Altcoin Season Index.

A closer look shows that Solana price has formed numerous bullish chart patterns that may lead to more downside over time. It formed a death cross pattern on November 4 as the 50-day and 200-day EMAs crossed each other.

The token then formed a bearish flag pattern. It is characterized by a vertical line and an ascending channel. It has already moved below the lower side of this channel, confirming its bearish outlook.

The token has also moved above and below the important support level at $126.55. This invalidated the double-bottom pattern that was forming, whose neckline was at $252. A double-bottom is a highly common bullish reversal sign.

Solana price has also plunged below the Supertrend and the Ichimoku cloud indicators. It’s a sign that the bearish outlook remains.

Therefore, the most likely SOL price prediction is bearish, with the next important target being the psychological level at $100. A drop below that price will point to more downside to $95, the lowest level in April this year.

SOL ETF Inflows Plunge 80%

Solana price continued its downtrend as demand for the spot SOL ETFs waned on Wall Street. SoSoValue data showed that the Spot Solana ETFs attracted $13 million in inflows this week.

The increase marked their smallest gain since approval in October. Investors slowed contributions compared to earlier weeks.

The weekly increase was a 80% decline from the previous week when these funds added $66.5 million in inflows. This decline was likely because of the Christmas holiday, when most investors kept off the market.

Spot Solana ETFs added $13 million in inflows this week, their smallest gain since October approval. The modest rise still outperformed Bitcoin’s $506 million outflow and Ethereum’s $63 million outflow.

Investors favored Solana despite weaker overall momentum. It was better than other altcoin ETFs like Dogecoin, Hedera, and Litecoin that had no inflows during the week.

Spot Solana ETFs now hold over $926 million in assets, equivalent to 1.35% of its market capitalization. This ratio gives it more room to grow since Ethereum and Bitcoin have multiples of 5% and 6.5%, respectively.

Other Key Solana Multiples Have Plunged

The ongoing Solana price crash coincides with weak network metrics. Transaction volumes have slowed, and active user activity has dipped. These declines highlight broader strain across the ecosystem.

Like other cryptocurrencies, Solana’s futures activity has stayed weak since the October liquidation event. That crash wiped out $19.5 billion in a single day, erasing billions in investor assets. The shock continues to weigh on trading sentiment across the market.

As a result, the futures open interest has plunged to $7.11 billion, down from $17 billion in October. That is a sign that the coin has had weak demand in the futures market.

Similarly, the funding rate, which looks at the small fee that bulls and bears pay each other, has stagnated. This confirmed the ongoing deleveraging.

The total value locked (TVL) in Solana’s DeFi ecosystem has continued falling in the past few weeks. It has dropped by 10% in the last 30 days to $18.3 billion. In contrast, Ethereum’s TVL remained steady in the same period, while Base and Plasma experienced some marginal increase.

Solana’s stablecoin supply has stagnated at $15.2 billion. At the same time, the number of transactions and fees in the network dropped by double digits in the past few weeks.