Solana News Update: Major Investors Place Significant Bets on Solana ETFs Amid 30% Price Drop, Challenging the Strength of $130 Support

Solana's ecosystem is experiencing a significant transformation as spot exchange-traded funds (ETFs) for its native token,

, continue to draw unprecedented investment inflows, even as the token's price remains in a downward trend. The introduction of several ETFs, such as Bitwise's BSOL and Fidelity's FSOL, has brought in $476 million over 17 straight days, despite SOL dropping nearly 30% from $186 to $130. This wave of institutional interest , fueling discussion about whether $130 represents a solid support or if further losses are ahead.

The surge in ETF activity is fueled by clearer regulations and increasing trust from major investors. Bitwise's BSOL leads the sector, making up 89% of all inflows, while

has further strengthened market confidence. Total assets managed by these ETFs have now surpassed $2 billion, with ETF expert Eric Balchunas observing that new investments are coming in "almost every day" . At the same time, , which has chosen SOL Strategies as its custodian, in this asset class.

However, price movements paint a more complex picture. SOL has repeatedly tested important support zones, with $130 proving to be a key psychological barrier. Blockchain data indicates that buyers have entered at this price,

on four-hour charts and an increase in the Relative Strength Index (RSI) from 28 to 50 since November 13. from the $130 level have often sparked 80–100% rallies, such as the 108% jump to $265 in late 2024.

In the futures market, the signals are mixed. over the past day, reaching $7.3 billion, but overall OI stayed steady as SOL approached $140, suggesting few new long positions. , reflecting increased optimism among short-term traders. The 50-period exponential moving average (EMA) at $160 remains a crucial level for bullish traders, and a breakout above this point could pave the way for a retest of $200.

Institutional interest is also supported by Solana's strengthening on-chain metrics.

over the last month, and transaction volume is up 9.1%, indicating ongoing network expansion. Projects like GeeFi, which seeks to connect crypto with real-world spending, are also gaining momentum, during its initial phase. These advancements are part of larger efforts to upgrade Solana's infrastructure, including improvements like Firedancer, which could boost transaction speeds to over 1 million per second.

Despite these strengths, some risks persist.

near $140, and if resistance fails, a drop to $120 could be next. For now, the $130–$140 range is the main battleground for Solana, with ETF inflows and network resilience helping to offset broader economic challenges.

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