Solana Holds Critical $139 Support Despite First ETF Outflows and $37M Upbit Breach
Solana (SOL) demonstrates ecosystem resilience as institutional adoption accelerates amid market headwinds
Quick overview
- Solana's new exchange-traded funds faced a setback with $8.1 million in net withdrawals, primarily due to the 21Shares Solana ETF (TSOL) losing over $34 million in one session.
- Despite TSOL's outflows, other Solana ETFs like the Bitwise Solana Staking ETF (BSOL) and Grayscale's GSOL showed strong inflows, indicating resilience in the ecosystem.
- Franklin Templeton's recent filing to launch a Solana ETF signals institutional interest and potential long-term growth for the currency.
- Solana's price remains stable at $139, even after a significant security breach at Upbit, showcasing the strength of its underlying infrastructure.
Solana’s new exchange-traded funds had their first problem on Wednesday, when they lost $8.1 million in net withdrawals after having a perfect record of inflows since they started. The 21Shares Solana ETF (TSOL) was mostly to blame for the reversal. It lost more than $34 million in one trading session, increasing its total net outflows to $26 million since it started.
Solana ETF Momentum Hits First Speed Bump After Perfect Launch Streak
But the larger Solana ETF ecosystem showed underlying strength because other products took in most of TSOL’s outflows. The Bitwise Solana Staking ETF (BSOL) kept its lead with $13.33 million in inflows in one day, bringing its total to an incredible $527.79 million. At the same time, Grayscale’s GSOL and Fidelity’s FSOL brought in $10.42 million and $2.51 million, respectively, which helped lessen the total effect.
Solana ETFs now own about 6.83 million SOL tokens worth about $964 million, which shows that institutions are still interested in the currency even though it is volatile in the short term. This is very different from the poor start of Dogecoin ETFs, as Grayscale’s GDOG product saw inflows drop 80% to just $365,000 on the second day.
Franklin Templeton Filing Signals Institutional Validation
Franklin Templeton, a worldwide financial giant, filed Form 8-A with the U.S. SEC to launch a Solana ETF. This adds to the positive story about Solana. The company manages $1.67 trillion in assets and wants to provide people regulated access to SOL without having to hold tokens directly. Analysts see this as a big long-term driver of growth.
Historical examples give us mixed advice: After getting clearance for an ETF in 2024, Bitcoin shot up to all-time highs. Ethereum, on the other hand, took a lot longer to build up similar momentum. It’s still up in the air whether Solana will follow Bitcoin’s rapid rise or Ethereum’s slow rise.
SOL Price Action Defies $37 Million Exchange Hack
Solana SOL/USD is currently trading at $139, which is down about 2% from the last 24 hours. However, it has been surprisingly consistent given the recent problems. The network survived a major security breach at South Korea’s Upbit exchange, when unauthorized withdrawals of about $37 million in SOL and Solana-based tokens took place.
Upbit promptly stopped deposits and withdrawals, moved the remaining assets to cold storage, and promised to fully refund customers from corporate reserves. Usually, these kinds of events cause big sell-offs, but Solana’s ecology showed surprising strength. Major Solana memecoins like BONK, TRUMP, and MOODENG didn’t pay much attention to the news, but on-chain statistics showed that people were buying a lot at crucial support levels.
The exchange has already frozen ₩12 billion worth of stolen LAYER tokens and is working with partners to find more. The timing of the breach, almost six years after Upbit’s infamous hack in 2019, has raised eyebrows, but it hasn’t shaken people’s faith in Solana’s underlying infrastructure.
SOL/USD Technical Analysis: Critical Levels and Price Targets
Solana is currently protecting the important $140 support zone, which is a multi-month high-timeframe level that has drawn a lot of purchasing attention. There is a resistance band right now between $142 and $145, where almost 13 million SOL tokens have built up. If SOL breaks out of this zone, it might go up to $165, with $188 and liquidity pockets between $220 and $240 being the next targets.
Longer-term technical trends point to much bigger possibilities. If Wyckoff reaccumulation structures finish as expected, prices could go up to $360–$480. But if the $143 support level isn’t held, the price could drop even further to the $130–$127 range, which could lead to more selling pressure.
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