Is a Bullish Reversal Taking Shape?

Solana’s price decline below $90 has put its recovery prospects at risk, but a potential bullish signal is emerging beneath the ongoing sell-off. While SOL continues to record lower lows, its RSI is moving in the opposite direction, hinting that bearish momentum may be losing strength. 

At the same time, 12 consecutive sessions without net inflows into spot Solana ETFs highlight weakening institutional demand. This creates a critical battle between fading selling pressure and a lack of fresh capital. Could this RSI divergence signal Solana’s next rebound, or is another leg lower still ahead?

Solana Price Breaks Below $90 as Selling Pressure Builds

Solana is trading near $89.90 after breaking below an important support area. The decline follows a broader correction from its October highs, with the token continuing to form lower highs and lower lows.

The latest breakdown also reflects weakening buying interest. SOL has struggled to regain its short-term moving averages, while the broader price structure continues to favour sellers. The loss of support has further weakened the recovery attempt, leaving the token vulnerable to continued volatility.

Solana ETF Outflows Highlight Weak Institutional Demand

Institutional flows are adding another layer of pressure to Solana’s recovery prospects. According to the latest market update, spot Solana ETFs have recorded no net inflows for 12 consecutive trading sessions.

The reported data shows that Bitwise and other ETF clients sold approximately $25.08 million worth of SOL in the latest session. The extended absence of positive flows suggests that institutional demand has weakened during the ongoing correction.

ETF activity remains an important indicator of investor appetite, particularly as institutional products provide another route for traditional investors to gain exposure to Solana. A return to consistent inflows could help improve market confidence, while continued outflows may make a sustained recovery harder to establish.

Bullish RSI Divergence Offers a Potential Turning Point

Despite the continued decline, Solana’s technical indicators are showing a potentially encouraging development. Its price is making lower lows, while the RSI is moving higher, creating a bullish divergence.

This pattern suggests that selling momentum may be weakening even though the price remains under pressure. Such divergences can emerge near the later stages of a correction, when sellers begin losing strength and buyers gradually return.

However, RSI divergence does not guarantee an immediate reversal. SOL still needs stronger buying participation and a meaningful improvement in its price structure to confirm that the downtrend is losing control.

If the divergence develops into a broader recovery signal, it could create an opportunity for Solana to stabilise after its recent losses.

Can Solana Price Rebound?

Solana’s near-term outlook remains cautious as weak ETF flows and a deteriorating price structure continue to weigh on the token. The lack of institutional demand also raises questions about how quickly buyers could return following the recent breakdown.

However, the improving RSI presents a potential counter-signal. If selling pressure continues to fade and spot demand recovers, SOL could attempt to reverse its recent losses.

The next phase will depend on whether this technical divergence attracts fresh buying interest or simply provides a temporary pause in the broader decline. For now, Solana’s recovery remains uncertain, but weakening selling momentum offers a reason to watch for a possible change in trend.

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