Solana (SOL) is trading near a critical support level at $85 after experiencing significant price declines and major institutional outflows. On-chain data platform Santiment reported that Solana ETFs saw $11.9 million in withdrawals on February 6, marking the second-largest single-day net outflow in their history. Analysts suggest the current environment could signal a market bottom, but technical indicators remain mixed as SOL attempts a fragile recovery.
Solana is testing a crucial demand zone between $85 and $88 following recent multi-month lows. According to CoinMarketCap data, SOL was trading around $87.18 as of the latest report.
Analyst BitGuru noted that a drop back to $85 could delay upside potential, potentially leading to a decline toward $78-$80. The next major upside target for bulls is the $98-$105 area if current support holds.
Santiment reported that Solana exchange-traded funds recorded $11.9 million in withdrawals on February 6. The platform stated this was the second-largest one-day net outflow in the history of Solana ETFs.
“Historically speaking, significant outflows represent a bottom signal,” Santiment said. It added that SOL has lost approximately 62% of its total market capitalization over the past four months.
Technical indicators show SOL trading below both its 20-day and 50-day exponential moving averages, confirming downward momentum. The Relative Strength Index on a 4-hour timeframe has moved from oversold to around 47, indicating reduced selling pressure but not yet bullish territory.
Traders are now watching the $90-$92 resistance zone as the first major barrier to a sustained rally. A successful breakout could lead to gains toward $98 and eventually $105.
Conversely, a break below $85 would invalidate the bullish thesis and likely accelerate a decline to the $78-$80 region. The outcome at this support level will determine whether SOL establishes a base for recovery or prepares for further downside.
