Solana (SOL) prices crashed below $160 despite the SOL derivatives seeing $199 million inflows.
In a period where the crypto market has once again fallen deep into the fear zone, Solana is trading at $159 after losing more than 20% during the past week. During the early days of October, the token was trading at around $229, but it crashed to $180 for support, due to fundamental and external factors. The token was trading in a range between $180 and $200 throughout the past month. And overall, ‘Uptober’ was just another October, and there was nothing special for Solana.
Come November, the bears did not hesitate to dominate the market. Despite Solana ETFs being approved and funds flowing into Solana, the token was not able to defend the $180 support level.
According to SosoValue, an ETF tracker, Solana ETFs had a daily net inflow of $70 million while the cumulative net flow hit $270 million as of yesterday. Funds started flowing into Solana derivatives markets after Bitwise’s newly launched Staking Solana (BSOL) exchange-traded fund (ETF) made a powerful market debut in its first trading week. Bitwise’s ETP (BSOL) saw more than $400 million in fund flow into it within the first week of trading.
Despite the Solana ETFs attracting so much funding, the prices have not reflected this. Analyst stated this muted reaction of Solana is because investors are rotating funds, and there is no new money flowing into the ETF.
Solana is oversold at $159 support level
On the price chart, Solana has crashed below the lower trendline of the bullish falling wedge. Instead of making a lower low and rebounding upwards, the token crashed below the trendline and is now supported at $159.
As Solana is overbought according to the Relative Strength Index (RSI), there is a high chance that the market could buy the dip. When buyers step into the market, Solana will once again have hopes of getting back into the groove of trading inside the falling wedge. However, before getting within the falling wedge, the token will have to rise above the $173 resistance level. Given that bears can pull out this feat, Solana will be back on track to hit $200.
