Solana Nets $101.7M in November Inflows as Price Tests $100 Support
Solana (SOL) investment products recorded $101.7 million in net inflows during November despite SOL’s price falling about 30% over the month and dropping to $123 on Dec 1. CoinShares data showed Bitcoin led inflows with $2.8 billion and Ethereum $1.3 billion; XRP drew $785 million, significantly outpacing Solana. Derivatives metrics for Solana showed open interest fell 11.43% to $6.68 billion while trading volume jumped 75% to $17.76 billion, suggesting traders were re-sizing positions rather than wholesale exits. Technicals: SOL trades below its 7- and 30-week moving averages, with the 50-week MA near $176 acting as resistance. A breakout model indicates a 74.15% chance of an early rebound and a 23.65% risk of further downside; RSI at 37.25 signals bearish momentum until SOL reclaims ~$140. Key levels: support around $100–$120 (critical $100.68), resistance near $140 and $155 (50-week MA). The report underscores steady institutional demand but warns that failure to hold $100 would extend the corrective phase.
Neutral
The news is neutral-to-cautiously bullish for market structure but not immediately price-positive. Positive elements: $101.7M institutional inflows signal continued institutional interest and capital allocation to Solana, and the derivatives activity (higher volume with lower open interest) suggests active position management rather than mass liquidations. The breakout model indicating a ~74% chance of a rebound supports potential stability above the $100 support. Negative elements: SOL closed below key moving averages, RSI is bearish at 37, and SOL has significant resistance at $140–$176. Historical parallels: assets that attract steady institutional flows while trading below longer-term moving averages (e.g., post-ETF rotation periods for altcoins) often see consolidation with episodic rebounds rather than immediate trend reversals. Short-term impact: increased volatility and trading opportunities as speculators adjust positions; risk of further downside if $100 breaks, which could trigger stop-loss cascades. Long-term impact: sustained institutional inflows can underpin price floors and support recovery once macro sentiment or on-chain fundamentals improve, but reclaiming the 50-week MA (~$176) will be necessary for a durable bull trend. Traders should watch open interest changes, volume spikes, and the $100 and $140 levels for directional signals.