Solana Tests $60 as Institutions Exit and ETFs Turn Negative

Solana [SOL] extended its bearish outlook on the price charts. The altcoin dropped to a low of $61 before slightly recovering, trading at $62 at press time — down 4.6% on the daily charts. SOL has not touched such low price levels since November 2023, effectively marking a 31-month low for an asset that has seen better days.

The decline continued as investors across the market pulled capital from the asset. Speculators, for their part, chose to walk away and wait for more suitable market conditions before reentering — a strategy sometimes called "patience," other times called "staring at the chart."

Institutional investors grew increasingly pessimistic and began closing their positions, with rising losses largely driving the bearish sentiment. SOL Spot ETFs turned negative after holding positive territory through the past month, recording negative net inflows for two consecutive days. This suggests that even institutional players are now aggressively dumping rather than buying the dip.

Selling pressure from larger participants has historically weakened the market further. In March, when SOL ETFs began selling, the altcoin declined from $91 to $81 — a reminder that when the big fish leave, the water level drops.

The shift in institutional sentiment appears largely driven by mounting losses in Solana treasuries. Forward Industries, for one, is currently down over $1.3 billion on its SOL bet — a number so large it has its own zip code. And it is not an isolated case.

Over the past 24 hours, Solana DATs are down 29%, with the total value of SOL held falling to $1.1 billion. With the Solana treasury thesis turning sour, other firms have become increasingly cautious about piling in.

Solana's downtrend momentum has continued to strengthen under intense bearish pressure. The altcoin's Relative Strength Index (RSI) fell deeper into oversold territory, touching a low of 15 — which, in classic RSI fashion, suggests bears are running the show and most buyers have been thoroughly eliminated.

With the recent dip, Solana is testing $60 as a critical support level. The downside strength appears increasingly elevated, raising the likelihood of a breach. If current conditions persist, SOL could drop below $60, with $53 standing as the next support level — assuming, of course, that $60 actually holds the line.