Capital inflow into Solana ETF soars: When will the price of SOL rise?

Spot ETF funds continue to maintain strong appeal to investment capital, even as SOL prices decline sharply. Since their launch, these products have recorded a total net capital of $476 million, with a continuous streak of increases lasting up to 17 days, despite SOL’s price plunging nearly 30%, from $186 down to $130.

Spot SOL ETF continues to attract investor interest

Leading among them is the BSOL ETF issued by Bitwise, accounting for up to $424 million, or 89% of total net capital, reaffirming its leading position in driving market demand. On November 19 alone, BSOL recorded an additional $35 million in new capital – the third-highest level since the ETF’s launch and the largest since November 3. Additionally, ETF analyst Eric Balchunas also highlighted the emergence of the Solana ETF issued by 21Shares, launched on the same day, with assets under management reaching up to $100 million.

DNet capital flow of Bitwise Solana ETF | Source: SoSoValueAccording to Balchunas, the total amount of spot SOL ETFs has attracted $2 billion, continuously recording inflows “almost every day,” despite the “extreme fear” sentiment dominating the market.

SOL continues to face difficulties as selling pressure increases

In recent trading sessions, Solana outperformed Bitcoin (BTC), Ether (ETH), and XRP (XRP), establishing higher price structures on short-term timeframes. However, the rapid rally was quickly halted at a strong resistance zone of the 50 EMA, causing the price to reverse down to $132.

BiFour-hour chart of Solana | Source: TradingViewMarket data from derivatives show signs of caution: Open interest (OI) remained relatively stable as SOL rose from $130 to $140, reflecting a lack of new long positions. Conversely, OI surged when prices began consolidating around the $140 level, indicating new short positions being opened at the resistance zone.

At the same time, the delta accumulation volume index (CVD) of futures contracts declined sharply during the correction, while spot CVD also continued to decline, reflecting persistent selling pressure from both derivatives and spot investors.

PhSolana futures contract data analysis on the 15-minute chart | Source: CoinalyzeNotably, the funding rate remains high even as SOL returns to $130, implying that leveraged long positions are still prevalent and pose significant risks if prices continue to fall.

Overall, if SOL fails to quickly regain the $140 level, upward momentum could weaken rapidly. The next downside target is identified around $120, where liquidity and demand from the order block on the daily timeframe converge. A strong rebound above $140 would help negate the downtrend, but until then, sellers are still in control of the market.

Mr. Giáo