Solana continues to trade below the critical $78 resistance level, with the cryptocurrency declining nearly 2 percent over the past 24 hours as spot Solana ETF outflows signal weakening institutional demand. The digital asset has been unable to mount a sustained recovery despite brief rallies above the key technical level.
Spot Solana ETFs have recorded net outflows in recent sessions, indicating that institutional investors are reducing their exposure to the token. The outflows come despite the broader cryptocurrency market showing signs of stabilization, with Bitcoin and Ethereum holding key support levels.
Technical analysts note that a break below $74 could send SOL toward the $64 support zone, representing a significant decline from current levels. Conversely, a decisive breakout above $78 with strong volume could trigger a rally toward $90, where the next major resistance cluster sits.
The weakness in Solana comes amid broader concerns about the health of the cryptocurrency market, which has seen total market capitalization decline significantly from its peak. Solana has been particularly affected by the cooling of memecoin activity on its network, which had been a major driver of transaction volume and user engagement earlier in the year.
Despite the price weakness, fundamental developments on Solana continue. The network has seen growth in DeFi applications, real-world asset tokenization projects, and institutional partnerships. However, these positive developments have not yet translated into price appreciation, as macro headwinds and declining retail interest continue to dominate market sentiment.
This article was adapted from Coin Journal. Read the original here.
