Solana (SOL) fell nearly 2% in the past 24 hours, failing to break through the $78 resistance level. The pullback came as spot Solana ETFs recorded net outflows of about $700,000 this week, signaling weaker institutional demand after a period of inflows earlier this month.
What's behind the stall
Daily trading volume on Solana dropped from a short-term peak of roughly $4 billion on July 2 to about $2 billion, indicating reduced buying interest. The Relative Strength Index, a momentum gauge, slipped to around 49, below its signal line, suggesting that bullish momentum is fading. Cooling U.S. inflation briefly boosted risk appetite earlier in the week, but the rally lacked enough steam to sustain a breakout above $78.
ETF flows flip from green to red
Earlier in July, Solana ETFs attracted more than $1.1 million in inflows and had accumulated nearly $3 million since the start of the month. This week's outflow of $700,000 marks a shift in sentiment. While the sum is modest, the reversal suggests that institutional players are taking profits or moving to the sidelines after the price failed to push higher.
Network fundamentals tell a different story
Despite the price weakness, on-chain metrics improved. Daily active addresses on Solana continued to climb, with the 30-day moving average of DAAs crossing above the 50-day moving average. That's a positive signal that usage and network activity are growing, even as traders retreat.
Key levels to watch
A break below $74 support could send SOL toward $64, a level not seen since late 2023. On the upside, a decisive move above $78 may trigger a rally to $90. The next few days will likely determine which direction the token takes. Traders are eyeing the $74 support line as a make-or-break point after the failed breakout attempt.
