Solana is capturing the attention of certain investors, despite the broader crypto market facing ongoing challenges. Despite significant price drops in major tokens impacting overall sentiment, the latest fund flow data and on-chain activity indicate that capital is not fully leaving the ecosystem. Market participants seem to be distinguishing between short-term price weakness and long-term network usage, resulting in a mixed yet significant outlook for SOL as it hovers around $79. On February 5, U.S. spot crypto ETFs experienced fluctuating capital movements. Bitcoin spot ETFs experienced net outflows totaling approximately $434 million, whereas Ethereum funds recorded around $80.8 million in outflows. In a notable development, Solana spot ETFs saw net inflows totaling $2.82 million, as reported.
While the inflows may seem modest in absolute terms, they are notable when viewed against the wider trend of risk aversion. Recent data indicates that a number of institutional and professional investors are either holding steady or increasing their limited exposure to Solana-linked products, even amid the persistent volatility in the digital asset markets. Network activity presented a striking disparity. In the past week, Solana has recorded over $31 billion in decentralized exchange spot volume, showcasing a remarkable level of user engagement despite the ongoing price decline. The disconnect between price movements and trading activity has emerged as a consistent narrative amid the latest market turbulence.
In the face of ETF inflows, the price action of SOL continues to show weakness. The token experienced a decline of over 30% in the past week, briefly trading between $67 and $68 before making a rebound to $80. Technical indicators are still showing signs of bearish momentum. Futures data indicates a drop in participation, as Solana’s open interest has decreased to approximately $5 billion, marking its lowest point since mid-April 2025. Funding rates have dipped into the negative, and the long-to-short ratio is still under one, indicating that a greater number of traders are bracing for additional declines.
SOL is currently exhibiting a distinct downtrend on the charts. The breach beneath crucial psychological thresholds around $100 and $85 intensified the selling momentum. Market analysts are currently identifying $82 and $76 as key near-term support levels, while $60 remains a potential downside risk should selling pressure escalate.