Solana resumes its descent
Over the past month, Solana’s (SOL) has continued to navigate a complex market environment as price action, institutional flows and network dynamics unfold against a backdrop of broader crypto volatility.
In recent sessions, SOL’s price has been relatively subdued, trading near support levels around $123.00 after earlier declines that pushed the token down from higher ranges.
Analysts note that the market’s sideways behaviour reflects cautious sentiment, with buyers and sellers balancing near key technical thresholds amid thin year-end liquidity conditions.
Despite this price pressure, institutional demand for Solana has remained a notable driver of interest. Solana has seen steady inflows into spot exchange-traded funds (ETFs), marking multiple weeks of positive institutional flows, while large holders – commonly referred to as whales – have been building positions in the spot market. This combination of steady institutional support and reduced leverage in derivatives markets suggests that deeper demand continues to underpin SOL, even as short-term volatility persists.
On-chain activity and broader adoption metrics present a mixed picture. Some reports indicate that on-chain activity, including decentralised exchange volumes, has declined significantly from earlier peaks, highlighting a divergence between Solana’s underlying blockchain usage and speculative price momentum. Nonetheless, the ecosystem continues to draw investment in certain segments, even as market participants await clearer directional moves.
Adding to the narrative of cautious accumulation, recent data also show that whale investors have been buying the dip at multi-month lows, with large orders being executed through major exchanges. This behaviour indicates that while retail sentiment appears tepid, deep-pocketed players may be positioning for a potential recovery or significant event catalyst rather than exiting the ecosystem entirely.
Beyond price and flows, ecosystem developments continue to shape Solana’s longer-term narrative. Although not every update has immediate price impact, innovations within the Solana ecosystem – such as new institutional products, developer tools and expansions in decentralised finance infrastructure – reinforce the perception that Solana’s network layer remains active and evolving.
Broader headlines around crypto adoption and infrastructure – including major financial institutions exploring crypto trading services that could eventually include tokens like SOL – hint at an expanding role for Solana in institutional portfolios, even if such developments are still in early stages.
Altogether, the last couple of weeks illustrate Solana’s position as a market balancing consolidation and ongoing interest. Price action remains under pressure amid a cautious macro backdrop and reduced liquidity, but steady institutional flows, whale accumulation and broader ecosystem relevance suggest that deeper conviction has not faded entirely.
Whether Solana breaks out of its recent range to the upside – or drifts lower if support weakens – will likely depend on macro sentiment, liquidity dynamics and continued engagement from larger market participants.
Solana bearish scenario:
SOL remains in a clearly defined downtrend while trading below its downtrend line and Monday’s $128.70 high.
A fall through the current December low at $116.94 would probably push the psychological $100.00 mark to the fore.
Solana bullish scenario:
At the very least the October-to-December downtrend line at $125.59 and, more importantly, Monday’s $128.70 high will need to be overcome for a recovery to gain traction.
Even if a short-term bullish reversal were to unfold, the next higher 20 November to 4 December highs at $144.65-to-$146.93 would need to be overcome for SOL to potentially bottom out.
In such a scenario the 200-day simple moving average (SMA) at $174.34 would probably be back in play.
Short-term outlook:
Bearish while below Monday’s $128.70 high.
Medium-term outlook:
Bearish while below the 4 December high at $146.93.