Analysis: SOL faces a deep correction despite the momentum of its ETFs

Source: CritpoTendencia Original Title: Analysis: SOL faces a deep correction despite ETF momentum Original Link: Although SOL quickly rebounded from the $130 (previous session’s low), the overall outlook for the crypto market remains tilted toward a bearish scenario.

At the time of writing, SOL is trading at $138, with daily gains of 3%, weekly losses of 9.4%, and monthly declines of 29.5%.

This correction comes despite the strong performance of its ETFs: 17 consecutive days of positive inflows into Solana ETFs.

What is pushing SOL’s price down?

SOL’s price is mirroring the trend in the crypto market, pressured by macroeconomic factors. There is still an expectation that the US Federal Reserve will not make further interest rate cuts this year.

Additionally, since the wave of liquidations recorded in mid-October, retail demand has yet to show clear signs of recovery in SOL’s case.

However, while the price is pulling back, ETFs continue to attract capital. If this interest holds, it could help stabilize the asset’s value over the coming weeks.

Adding to this is the launch of the new Solana ETF from 21Shares, under the symbol TSOL, which began trading with $100 million in assets under management and a fee of 21 basis points. With its debut on November 19, there are now five such products available in the United States.

SOL chart analysis: levels to watch

After losing the key $150 level, SOL showed a marked pullback on the charts. If weakness persists, some analysts consider a drop below $120 likely, a level that would erase much of the gains achieved mid-year.

Relevant resistance levels:

• $144: immediate resistance and daily high. SOL failed to break through it in recent sessions.
• $161: key intermediate resistance, from which the price was sharply rejected, creating the monthly lows.
• $171: the most important resistance, where the strongest bullish control is concentrated.

Support levels to consider:

• $128: strong support, with historical price reactions.
• $110: psychological level with strong buying interest; would be the next target if the previous support breaks.
• $98: another relevant support that served as a reaction zone in previous cycles.

The RSI at 36 points indicates that SOL is approaching oversold levels, which could enable short-term rebounds.

Key data to consider about SOL

Since their launch on October 28, Solana ETFs have not recorded any capital outflows. They have net inflows of $476 million. On Wednesday alone, around $56 million flowed in, according to SoSo data, showing sustained capital flow into these products.

Open interest in Solana futures fell from $10 billion recorded on November 1 to stabilize around $7.2 billion, according to CoinGlass.

On major exchanges, 77.71% of traders are holding long positions, leaving the long/short ratio at 3.49. This suggests that sentiment is starting to shift toward a slightly more bullish scenario.

In the past week, the dApps with the highest revenues on Solana were Pumpfun ($9.85 million) and Ore ($3.02 million). Altogether, the decentralized applications in the ecosystem surpassed $16 million in revenue during that period.