The price of Solana is facing intense downward pressure this Thursday, probing critical technical levels not seen in over a year. A stark divergence is defining the current landscape: while on-chain metrics and chart patterns suggest further weakness could be imminent, institutional investment data reveals a contrasting narrative of strategic accumulation.
Institutional Accumulation Amidst the Sell-Off
Contrary to the prevailing negative sentiment among retail participants, major financial players appear to be using the downturn as an entry point. U.S.-based spot ETFs focused on Solana saw net inflows of nearly $11 million on December 17, with products from firms like Bitwise and Fidelity leading the charge. In a separate development, Valour secured regulatory approval to list a new Solana-based product on Brazil’s B3 exchange. This activity indicates that professional asset managers may view the depressed prices as a long-term buying opportunity, creating a fundamental clash between short-term technical risks and longer-term institutional optimism.
Network Fundamentals Reflect Capital Flight
Current fundamental data largely supports investor caution. The Total Value Locked (TVL) within the Solana ecosystem has plunged by more than 34% to $8.67 billion, marking its lowest point since June 2025. This significant drop points to capital exiting major decentralized finance protocols such as Jito and Jupiter. Metrics for daily transactions and active wallet addresses have also trended lower, reinforcing concerns about near-term network activity.
Should investors sell immediately? Or is it worth buying Solana?
A sole positive fundamental note comes from the network’s underlying technology. Solana recently withstood a substantial distributed denial-of-service (DDoS) attack without any operational downtime, successfully demonstrating the robustness of its latest validator upgrades.
A Precarious Technical Picture
The accelerated sell-off has driven the cryptocurrency to a new 52-week low of approximately $122.74. Technical analysts are highlighting the formation of a “bear pennant” pattern on the charts, which typically signals the continuation of an existing downtrend. Market observers warn that a sustained break below the crucial support zone between $122 and $126 could trigger a full-scale capitulation event, potentially driving prices as low as $86. For the immediate bearish scenario to be invalidated, Solana would need to reclaim and hold above the $145 resistance level.
The market remains sharply divided. Traders are now intently focused on the $118 to $120 price area. A weekly close beneath this range would likely confirm the bearish momentum for the short term. However, consistent inflows into institutional investment products could simultaneously be building the necessary foundation for a future recovery, setting the stage for a potential clash between technical selling pressure and fundamental buying interest.
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