Solana (SOL), ETF Institutional Fund Inflow Recovers...Is a 73% Plunge from All-Time High an Opportunity?

▲ Solana (SOL)

Solana (SOL) has fallen by approximately 73% from its all-time high of $294.33. However, institutional funds and network activity are sending contradictory signals. While funds flowed out of Bitcoin and Ethereum spot ETFs, $5.75 million flowed into Solana spot ETFs, and weekly non-vote transactions surpassed 1 billion, reigniting the scenario of recovering $100.

According to crypto media outlet Coingape on July 6 (local time), Solana rebounded by over 15% in the preceding week before encountering selling pressure around $80. This is approximately 73% lower than its all-time high of $294.33 recorded on January 19, 2025. Coingape analyzed that there is still room for a rebound attempt in July based on technical signals.

ETF funds diverged from Bitcoin (BTC) and Ethereum (ETH) to Solana. US Bitcoin spot ETFs saw an outflow of $527 million from June 29 to July 2, marking eight consecutive weeks of net outflows, and Ethereum spot ETFs also recorded a net outflow of $13.67 million. In contrast, US-listed Solana spot ETFs saw a net inflow of $5.75 million. XRP spot ETFs and HYPE ETFs also received $17.19 million and $4.32 million, respectively.

Trading activity provided additional support for Solana's bullish case. Solana ranked second globally in spot cryptocurrency trading volume, combining decentralized and centralized exchanges, for two consecutive weeks. Its weekly trading volume was $12.25 billion, surpassing Bybit's $10.57 billion, while Binance maintained the overall top position. Solana's weekly non-vote transactions exceeded 1 billion for the first time, reaching an all-time high.

User activity also increased sharply. Solana's weekly active users grew from 16.8 million to 29.7 million in two weeks, an increase of 12.9 million or 76.8%. Solana also led in 24-hour and 7-day decentralized application (DApp) revenue rankings and decentralized exchange trading volume when comparing Layer 1 and Layer 2 blockchains. The network activity, which had slowed down in June, revived again in early July.

Technical turning points are support at $80 and resistance at $85. The Relative Strength Index (RSI) is 53, indicating a recent slowdown in upward momentum, and the Moving Average Convergence Divergence (MACD) line is below the signal line, suggesting weakening short-term buying pressure. If it drops below $80, support levels at $78, $75, and then $70 will be observed. If it clearly breaks above $85 with accompanying volume, $90 and $100 are presented as the next target prices.

[Article Key Summary]

-Solana has fallen approximately 73% from its all-time high of $294.33, but US-listed Solana spot ETFs saw a net inflow of $5.75 million.

-Weekly spot trading volume reached $12.25 billion, ranking second globally, and non-vote transactions surpassed 1 billion, reaching an all-time high.

-Solana is between $80 support and $85 resistance; if it breaks above $85, $90 and $100 are presented as the next target prices.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*