Solana News Update: Institutions Show Trust Amidst Bearish Sentiment—Solana Struggles to Regain $125

Solana Faces Market Downturn Amid Broader Crypto Selloff

Solana (SOL) has dipped below the $125 mark as intensified selling pressure sweeps through the cryptocurrency sector. The wider market downturn has seen Bitcoin fall beneath $87,000, resulting in more than $600 million in liquidations over the past 24 hours. Despite this recent pullback, several analysts maintain that Solana’s underlying fundamentals—such as institutional interest, on-chain engagement, and technical signals—point to a possible recovery ahead.

Currently trading at $123, Solana has experienced a 12.3% decrease in spot trading volume and a 1.17% drop in futures activity. However, the token has attracted significant attention from investors, with spot ETF inflows totaling $621 million over a 21-day streak—the longest continuous inflow period for any major crypto ETF in 2025.

Institutional Inflows and ETF Momentum

Major investment firms including Bitwise, Grayscale, and Fidelity have played a pivotal role in this trend, collectively contributing $53 million in net inflows on November 25 alone. The momentum has been further fueled by Franklin Templeton’s recent SEC application for a Solana ETF, signaling growing institutional appetite for the asset.

Despite these positive developments, derivatives data reveals a bearish sentiment, with open interest in SOL futures declining by 6.17% to $7 billion and funding rates turning negative. Nevertheless, Solana’s network activity remains strong, leading the industry in decentralized exchange (DEX) trading volume and application revenue over the past month.

Technical Analysis: Key Support Levels in Focus

From a technical perspective, Solana is currently testing the lower boundary of a 1,200-day ascending channel established since May 2022—a level that has historically sparked price rebounds. Market analyst Trader Tardigrade has observed that SOL has returned to its lowest sub-channel region, an area that previously marked the beginning of significant upward trends.

If buyers manage to defend this crucial support, Solana could attempt to revisit the upper channel range, potentially targeting the $1,500 level. However, recent trading has been dominated by sellers, with the token falling 5% intraday and the Relative Strength Index (RSI) nearing oversold conditions at 32.

Solana’s Ecosystem and Industry Position

The conversation around Solana has also been influenced by the network’s ambitious vision. The Solana team has recently compared their platform to “the Amazon of finance,” highlighting its emphasis on speed, affordability, and user experience as key drivers of adoption. This comparison has sparked debate within the industry, notably with Helius CEO Mert Mumtaz, but it underscores Solana’s strategic approach in the crypto space. Skeptics, however, point out that technical indicators remain subdued, with both the RSI and MACD yet to signal a bullish reversal, despite a 15% bounce from November’s lows.

Outlook: Risks and Opportunities Ahead

Experts warn that if Solana cannot reclaim resistance in the $140–$150 range, the current correction may deepen. A sustained move below $126 could see the token test support at $112 or even $95. On the other hand, persistent ETF inflows and robust on-chain data reflect ongoing institutional confidence. Over the past week, major holders have accumulated 773,311 SOL—worth nearly $98 million—demonstrating a continued commitment to long-term investment in the asset.