Solana's native token SOL has experienced a steep decline over the past month, dropping roughly 25% and trading around $81 according to CoinGecko. The sharp pullback has split the analyst community, with some viewing current prices as a compelling entry point while others warn of potential further losses.
Several market participants have adopted a bullish stance on the recovery prospects. Analyst ZAYRO ₿ stated that SOL is approaching the end of its manipulation phase and entering a distribution zone where a substantial rally is anticipated. According to the analyst, Solana at current price levels represents a significant buying opportunity.
Other bullish voices pointed to technical support levels as evidence for an upside move. One analyst noted that SOL's downside liquidity has been swept and identified major liquidity zones around $90 and $100. Another trader predicted a potential price explosion toward a new all-time high above $1,000 if the bottom holds near $80.
However, bearish sentiment remains influential in the market. Some analysts highlighted key support levels, noting that holding above $83 could enable a major rally, while a break below could trigger a severe pullback. Additional concerns center on potential further weakness, with projections suggesting support around $78 and potential further declines to $63-$66 if that level fails.
Institutional activity has leaned toward caution. Spot SOL ETFs have recorded five consecutive weeks of outflows, with the last positive inflow day occurring on October 21. These investment vehicles have experienced significant outflows since the end of September, reflecting reduced exposure from hedge funds, pension funds, and other institutional investors.
Onchain data reinforces bearish concerns. Solana's exchange netflow has shown inflows dominating outflows in recent months, indicating that more investors are moving assets to centralized platforms, potentially increasing near-term selling pressure.
