Solana’s price has entered a technical bear market after falling more than 27% from its August peak, despite spot SOL exchange-traded funds (ETFs) surpassing the $500 million mark in total assets under management.
SOL drops despite strong ETF inflows
The Solana (SOL) token was trading at around $185 on November 1, well below its year-to-date high near $300. The decline comes even after the U.S. Securities and Exchange Commission (SEC) approved the first spot Solana ETFs earlier this week.
Investor demand for the new funds has been strong. According to data from SoSoValue, spot SOL ETFs have attracted nearly $200 million in cumulative inflows. Their combined assets now exceed $500 million, representing roughly 0.5% of Solana’s total market capitalization.
Among the newly launched funds, Bitwise’s BSOL ETF has taken the lead with about $400 million in assets, benefiting from a first-mover advantage and lower 0.20% expense ratio. In comparison, Grayscale’s Solana ETF charges 0.35%, though it compensates investors with staking rewards of up to 7.5% annual yield.
market correction and ‘sell the news’ effect weigh on SOL
Analysts point to two main factors behind Solana’s price weakness. First, the ETF launches coincided with a broader market pullback. Bitcoin (BTC) dropped to $108,000, while the total crypto market capitalization declined to $3.7 trillion, leading to widespread risk-off sentiment across digital assets.
Second, traders appear to be engaging in a “sell the news” pattern—where prices rise in anticipation of a major event and then fall once it materializes. This behavior is common in crypto markets, particularly following high-profile product launches or regulatory approvals.
Looking ahead, investors are watching two potential catalysts: the expected approval of additional SOL ETFs and the upcoming Alpenglow network upgrade, which aims to enhance Solana’s scalability and performance.
SOL technical outlook
Technical indicators show that Solana remains under pressure. The daily chart reveals that SOL has fallen below the 38.2% Fibonacci retracement level and has also slipped beneath both the 50-day and 100-day exponential moving averages (EMAs).
The token is currently forming a bearish pennant pattern, suggesting that momentum favors further downside. It also trades below the Supertrend indicator, reinforcing the bearish bias.
If the selloff continues, analysts expect sellers to test the next major support level at $171—the low from October 11—which coincides with the 50% retracement level. A decisive break below that threshold could open the door to a deeper decline toward $150.
