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Solana’s Recent Slowdown: What’s Going On?

Home Solana’s Recent Slowdown: What’s Going On?
By: Amit Kmir / October 31, 2025

The recent data points to Solana (SOL) experiencing a notable weakening in investor momentum. Spot inflows into SOL have dropped to a six-month low, hovering near $180 million — a steep fall from prior levels when inflows spiked as high as $885 million in a single day. 

This slump in inflows comes in the wake of two major developments:

  1. The debut of SOL-based ETFs in the U.S. (Bitwise Solana Staking ETF and Grayscale’s SOL-backed ETF) had initially generated investor excitement. 

  2. SOL failed to maintain momentum past the $200 threshold, instead slipping to ~$186 and triggering bearish technical signals.

Coupled with increasing exchange outflows (i.e. more SOL being sent to exchanges rather than withdrawn to wallets or held) and weak technical confirmation, the trend suggests waning demand and cooling sentiment for now.

Technical & On-Chain Signals: A Bearish Overlay

Let’s break down what the charts and on-chain signals are telling us:

  • Moving Averages / Resistance Flip: The 30-day moving average (MA) has flipped into a resistance zone. SOL’s minor rebound attempts have been capped, indicating that sellers currently hold control in the near term. 

  • RSI / Momentum Indicators: The Relative Strength Index (RSI) is stuck under the neutral 50 line, showing lackluster momentum. Lower highs in RSI suggest that buyers are not pushing aggressively even in minor moves. 

  • Support Zones at Risk: Without a decisive reclaim of $190–$195 with volume, SOL may retest lower support levels near $180 or even $172. crypto.news

  • Exchange Inflows/Outflows: Major exchanges like Binance, OKX, Coinbase, and Bybit recorded net outflows of SOL recently, signaling increased selling pressure or redistribution of holdings. crypto.news

These signals don’t necessarily guarantee further downside, but they raise the probability, especially if macro or sentiment conditions turn unfavorable.

What Changed From the ETF Hype?

When the SOL ETFs launched, there was clear investor optimism — inflows surged, and many speculated SOL could enter a sustained rally. crypto.news But several dynamics may have cooled expectations:

  • Hype Exhaustion: The initial excitement may have been front-loaded; once novelty faded, investors shifted toward more proven assets like Bitcoin and Ethereum ETFs. 

  • Rotation & Risk Management: Some capital likely rotated out of SOL into safer or more liquid assets, especially in uncertain markets or ahead of macro events.

  • Lack of Sustained Volume: Without continued buying volume, price breakouts lack follow-through — making it harder to breach resistance levels convincingly.

  • Sentiment Shifts: Broader market sentiment (e.g. interest rates, crypto regulation, macro risk) can influence whether risk assets like SOL can hold gains.

Implications for Investors

Here are key takeaways and caution points any crypto participant should keep in mind:

  1. Momentum Is Fragile
    Markets driven by hype can reverse quickly when inflows dwindle. What looked like a breakout can turn into consolidation or a retracement if not backed by strong fundamentals and volume.

  2. Confirm Breakouts Before Diving In
    Instead of chasing price — wait for confirmation with volume, sustained closes above resistance zones, and healthy on-chain flows.

  3. Be Wary of Overreliance on ETFs as Catalysts
    Launching ETFs can be a catalyst, but it doesn’t guarantee ongoing capital inflow. Consider them as just one part of a broader landscape, not a magic bullet.

  4. Use On-Chain + Technical in Tandem
    Combine exchange flow data, holder behavior, network metrics, and technicals to form a more robust view—each dimension fills in gaps left by the others.

  5. Define Risk & Use Stops
    In volatile assets like SOL, defining downside protection (stop-loss levels, position sizing) is critical. If support zones break, trimming or exiting can limit damage.

Conclusion

The recent drop in SOL inflows, failure to retake the $200 zone, and weakening on-chain/technical indicators suggest the current trend is tilting bearish. While this doesn’t imply a collapse, it advises caution. For investors, patience and discipline are key—don’t chase hype, watch for confirmation, and always guard against downside risk.

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