Solana Price News: Investors Keep Pouring Money into SOL ETFs as It Nears $75

Solana (SOL) has gone down by over 5% in the past 24 hours, currently nearing the $75 support.

Trading volumes remain quite high at nearly $4 billion, accounting for almost 9% of the token’s circulating market cap.

This indicates that selling pressure is still strong, even though SOL is trading 69% below its local high of $247 per token.

Solana Weekly Trading Volumes – Source: Artemis

However, volumes have subsided compared to the previous week. Data from Artemis indicates that $22 billion worth of SOL exchanged hands by the end of last week, compared to a recent peak of $54.6 billion during the week ended on February 8.

This could be an early indication that the selling pressure is decreasing, raising the odds that SOL may soon hit a local bottom.

Solana ETFs Bring In Positive Net Inflows for 9 Consecutive Days

Meanwhile, despite Solana’s strong retreat, investors have kept pouring money into exchange-traded funds (ETFs) linked to this altcoin.

According to data from SoSoValue, Solana ETFs have been bringing in positive net inflows for 9 days in a row, receiving a total of $36 million during this period.

Similarly, on-chain data from Artemis shows that weekly active users within the Solana blockchain spiked to the highest level since February last year, back when SOL was trading at $188 per token.

Solana Daily Active User – Source: Artemis

Even though weekly users started to retreat from that local peak in the past two weeks, network usage and traders’ interest in Solana’s ecosystem remain quite high from a historical standpoint.

Daily Chart Shows Third Retest to Key Support at $77

Solana’s daily chart shows that the token has hit the $77 area for the third time in just two weeks.

SOL/USD Daily Chart – Source: TradingView

The last two times, the price bounced back – can this be the token’s local bottom?

The fact that SOL has gone back to this support area multiple times is not necessarily good, as it indicates that buying interest has not been strong enough the last two times to produce a meaningful increase.

Hence, market makers have to push the price down to find fresh buyers. Lower time frames will provide additional data regarding how the price is reacting to a retest of this key level.

Meanwhile, the Relative Strength Index (RSI) shows a mild bullish divergence as the oscillator has stepped off oversold and has made a few higher lows even though the price continues to dip to the same level ($77).

These could be early signals of sellers’ exhaustion. However, we need further evidence before rushing to conclusions.

SOL Eyes Deeper Drop to $64 After Two Consecutive Sell Signals

Heading to the hourly chart for more granular data, we can see that SOLD just broke below a previous support at $76.5 after a sell signal flashed yesterday.

SOL/USD Hourly Chart – Source: TradingView

These sell signals flag “decisional” candles that feature above-average trading volumes and a specific candle pattern.

This increases the odds of a continued move downwards. Hence, the $77 support seems to be faltering right now.

The current price action opens up an interesting opportunity for a short position with a near-term target set at $64 and a stop loss placed at around $79. Such positions feature a risk-reward ratio of around 5x.