The crypto market, once brimming with optimism, has entered a harsh phase, with Solana (SOL) struggling amidst the downturn. At press time, Solana was down over 20% since the start of February, on the back of the broader market’s correction.
After breaching its macro head and shoulders pattern on the daily, weekly, and monthly time frames, the price dropped below key support levels, including $70, in early February.
Losing the $79-$81 support zone, Solana fell to around $69 soon after.
If this level fails to hold, the next demand zone will be between $49 and $53. Now, while the broader market crash contributed to the drop, traders and investors are asking a very pertinent question – Even after dropping below $100, is the storm about to get much worse? Well, there could be further downside ahead.
Heavy ETF outflows lead to net losses
Solana’s bleeding didn’t stop at its price levels alone. It also faced heavy ETF outflows, totaling a staggering -67,632 $SOL ($5.68M) over the past week. In fact, 06 February saw over $1M worth of Solana tokens exit, marking the seventh instance of such outflows.
This episode of sustained retreat from Solana-focused ETFs points to a broader loss of confidence. The market has been sending clear signals and investors are moving away from Solana [SOL]. Hence, it is possible that the trend will not reverse itself anytime soon.
Solana’s market cap for RWAs surpasses $1 billion!
According to Token Terminal, on 7 February 2026, Solana’s RWA market cap surpassed $1 billion – A sign of growth in tokenized assets despite market challenges. This milestone may be evidence of progress towards adoption on the back of strong fundamentals too.
If momentum holds steady, it could support further innovation and market confidence. The next step for Solana will be sustaining growth and attracting more institutional support.
Will the market absorb outflows or push Solana lower?
With ETF outflows mounting and Solana’s price dipping to new lows, the question remains – Will the market absorb the losses and stabilize? Or, is this the start of a deeper downturn? Unless Solana can reclaim crucial levels between $118 and $145, its recovery might be unlikely.
Institutional inflows are needed to flip the script, but if these don’t materialize, the downside risks will be too pronounced to ignore. At this stage, the market is not showing signs of strong absorption. Instead, it’s wavering on the brink of further capitulation.
Final Thoughts
- Solana has been showing clear signs of market weakness, with massive outflows, and any level below $100 now representing a key demand zone.
- Future of Solana hinges on institutional support and without it, a deeper fall may be inevitable.
