Solana is trading near $89.90 after breaking below an important support area, continuing a broader correction from its October highs. The token has been forming lower highs and lower lows, and it has struggled to regain its short-term moving averages, leaving the price structure favoring sellers.
ETF Outflows Highlight Weak Institutional Demand
Spot Solana ETFs have recorded no net inflows for 12 consecutive trading sessions, according to the latest market update. In the most recent session, Bitwise and other ETF clients sold approximately $25.08 million worth of SOL.
The extended absence of positive flows suggests institutional demand has weakened during the correction. ETF activity remains an important indicator of investor appetite, as these products provide traditional investors with another route to gain exposure to Solana. A return to consistent inflows could help improve market confidence, while continued outflows may make a sustained recovery harder to establish.
Bullish RSI Divergence Offers a Potential Turning Point
Despite the continued decline, Solana's technical indicators show a potentially encouraging development: the price is making lower lows while the RSI is moving higher, creating a bullish divergence. This pattern suggests selling momentum may be weakening even as the price remains under pressure. Such divergences can emerge near the later stages of a correction, when sellers begin losing strength and buyers gradually return.
However, RSI divergence does not guarantee an immediate reversal. SOL still needs stronger buying participation and a meaningful improvement in its price structure to confirm that the downtrend is losing control. If the divergence develops into a broader recovery signal, it could create an opportunity for Solana to stabilize after its recent losses.
Can Solana Price Rebound?
Solana's near-term outlook remains cautious as weak ETF flows and a deteriorating price structure continue to weigh on the token. The lack of institutional demand also raises questions about how quickly buyers could return following the recent breakdown.
The improving RSI presents a potential counter-signal. If selling pressure continues to fade and spot demand recovers, SOL could attempt to reverse its recent losses. The next phase will depend on whether this technical divergence attracts fresh buying interest or simply provides a temporary pause in the broader decline. For now, Solana's recovery remains uncertain, but weakening selling momentum offers a reason to watch for a possible change in trend.
