Solana (SOL) Price: ETF Demand Dries Up as Traders Exit Long Positions

TLDR

• Solana (SOL) recovered 4% on Monday after dropping 6% on Sunday, but remains down 14% for the week
• US spot Solana ETFs recorded their lowest weekly inflows at $9.57 million, down from $46.88 million the previous week
• Long liquidations exceeded $60 million in 24 hours while short liquidations totaled just $2.14 million
• Solana futures Open Interest declined 1% to $7.41 billion with a negative funding rate of -0.0036%
• Backpack CEO Armani Ferrante says Solana is shifting focus from memecoins and NFTs to financial infrastructure and trading

Solana is attempting to recover after a difficult week. The cryptocurrency gained 4% on Monday following a 6% decline on Sunday.

Despite the Monday bounce, SOL finished last week down 14%. The price currently sits around $125 but remains below key moving averages.

The decline comes as both institutional and retail interest shows signs of cooling. US spot Solana ETFs recorded their weakest weekly performance since launching.

These investment vehicles brought in just $9.57 million last week. This represents a sharp drop from the $46.88 million in inflows the previous week.

The reduced institutional demand reflects broader market caution. Geopolitical concerns and tariff-related threats from the US have contributed to risk-off sentiment.

Speculation about Japanese central bank intervention has also weighed on crypto markets. The rising Japanese Yen could create additional pressure across digital assets.

Derivatives Markets Signal Bearish Sentiment

Retail traders are also pulling back from bullish positions. Long liquidations totaled over $60 million in the last 24 hours.

This contrasts sharply with short liquidations of just $2.14 million over the same period. The data confirms selling pressure dominates current trading.

Solana futures Open Interest dropped 1% to $7.41 billion. Open Interest measures the total value of outstanding derivative contracts.

The decline indicates bullish positions are being closed while new positions lean bearish. The funding rate turned negative at -0.0036%, another sign of bearish sentiment.

From a technical perspective, SOL faces resistance at multiple levels. The 50-day exponential moving average at $135 represents the first barrier to recovery.

The 100-day moving average sits at $144. All major moving averages point downward, reinforcing the bearish structure.

The MACD indicator remains negative but shows signs of contraction. This suggests downside momentum may be slowing.

The Relative Strength Index sits at 38, indicating weak momentum without reaching oversold territory. A break below the December low at $117 could open the path to $112 and then $100.

Network Focus Shifts to Financial Infrastructure

Beyond price action, the Solana ecosystem is undergoing a strategic shift. Backpack CEO Armani Ferrante told CoinDesk the network is focusing more on financial infrastructure.

This represents a departure from the memecoin-fueled activity that characterized recent months. Ferrante described the transition as moving away from NFTs and games toward decentralized finance.

The CEO framed this change as a sign of maturity. Solana is positioning itself around high-throughput trading and market settlement.

Ferrante noted that institutional interest remains strong despite subdued crypto prices. Wall Street firms are exploring tokenization and onchain settlement solutions.

The long-term vision centers on Solana serving as a neutral settlement layer. In this model, assets like stocks and derivatives would move as standardized tokens.

Ferrante emphasized that real-world adoption requires regulatory integration. Compliance and legal clarity are becoming essential as crypto infrastructure matures.

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