Solana Selloff Hits $61 Low as SOL Spot ETFs Turn Negative
Solana (SOL) extended its bearish move, falling about 4% to a 31-month low near $61, with SOL last seen around $62. Traders are now watching $60 as the key support level after momentum strengthened and RSI slipped to around 15, signaling deeper oversold conditions.
The catalyst highlighted in the report is institutional outflows. SOL Spot ETFs turned negative after roughly a month of positive accumulation, with spot net inflows registering negative values for two straight days—suggesting institutions are actively dumping SOL. A prior example is cited from March, when ETF selling coincided with SOL dropping from about $91 to $81.
Beyond ETFs, the article links the sell pressure to large SOL-related losses at firms and treasury exposure. One company example mentioned is Take Forward Industries, whose treasury is reportedly down over $1.3B on its SOL position. It also notes Solana DATs falling about 29% over 24 hours, with total SOL held around $1.1B.
If bearish conditions persist, the report expects a potential breach of $60, with $53 flagged as the next support zone. For traders, this setup increases the risk of continued downside while oversold readings may also attract short-term relief bounces.
Bearish
This news is bearish because it points to sustained SOL selling pressure rather than a one-off dip. The key signals are: (1) SOL Spot ETFs flipping negative for two consecutive days, which historically has coincided with larger drawdowns (the article cites March’s ETF selling leading to SOL falling from ~$91 to ~$81); and (2) broader institutional positioning losses tied to SOL exposure (e.g., reported large treasury drawdowns and falling SOL held in Solana DATs).
In the short term, traders may treat $60 as an “invalidation” level—if it breaks, momentum traders can pile in, pushing liquidity lower and reinforcing the downtrend. Oversold readings (RSI near 15) can cause brief relief rallies, but when ETF flows and institutional behavior remain negative, bounces often face selling resistance.
In the long term, persistent ETF outflows and repeated institutional de-risking can cap upside until flows stabilize. A sustained return to positive ETF net inflows would be the main confirmation that bearish pressure is easing; until then, volatility is likely to remain elevated and trend-following strategies may stay defensive.