Solana The price has fallen below $90, is a bullish reversal forming?
After the price of Solana fell below $90, its prospects for recovery faced risks. However, amidst continued selling pressure, a potential bullish signal is emerging. Although SOL continues to set new lower lows, its Relative Strength Index (RSI) RSI is moving in the opposite direction, suggesting that the bearish momentum may be weakening.
At the same time, the spot Solana ETF has not seen any net inflows for 12 consecutive trading days, highlighting that institutional demand is weakening. This puts the market in a critical tug-of-war: on one side, selling pressure is diminishing, while on the other side, there is a lack of new funds. Will a divergence from RSI become a signal for the next round of rebound in Solana, or will prices continue to fall further?
Solana Price falls below $90, selling pressure intensifies
Solana is currently trading around $89.90, having previously fallen below an important support level. This decline continues a broader adjustment since the October high, and the token is still forming lower highs and lower lows.
The latest round of breakdowns also reflects a weakening interest from buyers. SOL has struggled to regain support above the short-term moving average, and the broader price structure remains bearish. The loss of support further weakens previous attempts at recovery, making this token more susceptible to continued volatility.
Solana ETF Capital outflows highlight weak institutional demand
Institutional capital flows are putting another layer of pressure on the recovery prospects of Solana. According to the latest market updates, spot Solana ETF has not recorded any net inflows for 12 consecutive trading days.
Reported data indicates that on the most recent trading day, Bitwise and other ETF clients sold approximately $25.08 million worth of SOL. The long-term lack of positive capital flow suggests that institutional demand has weakened during this current round of adjustments.
ETF Activity remains an important indicator of investor interest, especially as institutional products provide traditional investors with another channel to allocate Solana. If capital flows resume a sustained net inflow, it may help to boost market confidence; however, if there is a continuous outflow, it may make it more difficult to establish a sustainable recovery.
RSI Bullish divergence brings potential turning points
Despite the continuous decline in prices, the technical indicators of Solana show a potentially encouraging change. Its price is hitting lower and lower lows, while RSI is on the rise, thus forming a bullish divergence.
This pattern indicates that although prices are still under pressure, the selling momentum may be weakening. Such divergences often occur in the later stages of an adjustment; when the selling force begins to weaken and buyers gradually return, this situation can arise.
However, RSI does not guarantee that prices will immediately reverse. SOL still requires stronger buying interest, as well as more meaningful improvements in the price structure, to confirm that the downward trend is losing its dominance.
If this deviation further develops into a broader sign of recovery, then Solana may see an opportunity to stabilize after its recent decline.
Solana Can the price rebound?
In the short term, the outlook for Solana remains cautious, with weak capital flows for ETF and a deteriorating price structure continuing to put pressure on this token. The insufficient demand from institutions also raises questions: How fast will buyers return after the most recent breakdown?
However, RSI improvement provides a potential counter-signal. If selling pressure continues to weaken and spot demand recovers, SOL may attempt to reverse the recent downward trend.
The next phase will depend on whether this technical divergence will attract new buying interest or merely cause a temporary pause in the larger downward trend. For now, there is still uncertainty regarding the recovery of Solana, but the weakening selling pressure provides at least one reason to pay attention to this trend change.
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