While Bitcoin trades above $100,000 and Ethereum consolidates over $3,800, Solana (SOL) finds itself in a distinct battle. As a year-end rally lifts other major cryptocurrencies, SOL has been locked in a multi-day struggle to reclaim the psychologically significant $150 level. This stagnation is being driven by substantial institutional capital outflows and shifting on-chain dynamics.
Year-End Portfolio Rebalancing Hits Solana ETFs
The recently launched Solana exchange-traded funds have become a mixed blessing. Data from December 3 revealed these institutional products experienced net outflows totaling $32.19 million, marking a sharp reversal from the positive inflows seen the previous week.
Leading the selling pressure was the 21Shares TSOL fund, which saw outflows of approximately $41.79 million. This was only partially offset by a modest $5.57 million inflow into the Bitwise BSOL product. The newly launched Franklin Solana ETF (SOEZ) was also unable to compensate for the broader withdrawal trend.
These mixed flows suggest a year-end portfolio rebalancing by major investors. Although regulated institutional access to Solana is now available, many appear to be adjusting their positions, creating noticeable downward pressure on SOL’s price.
Ecosystem Activity Diverges from Native Token Performance
A paradox is emerging within the Solana network. While the native SOL token weakens, specific niches within its ecosystem are experiencing a boom. Assets such as ZEREBRO and PIPPIN, which combine artificial intelligence with cryptocurrency, are posting significant gains and driving notable trading volume on decentralized exchanges.
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This capital rotation within the Solana universe is keeping network fee activity elevated, but it is simultaneously drawing investment away from SOL itself. Investors are increasingly favoring speculative niche narratives over the core Layer-1 token, a pattern that has intensified throughout the fourth quarter of 2025.
Concurrently, the core development team is progressing with critical network upgrades—Alpenglow, MCP, and BAM—aimed at further reducing stability issues and latency. Following liquidity constraints earlier in the month that raised centralization concerns, these technical improvements are viewed as essential.
Critical Technical Support in Focus
SOL is currently oscillating between $139 and $146, having rebounded from a seven-day low around $123. The support zone between $134 and $139 now acts as a crucial defensive line. A breakdown below this level could trigger a retreat back toward $123. Conversely, a sustained breakout above the $150 resistance would open a path toward the $170 region.
As of December 5, the situation remains tense. For SOL, the defensive posture is likely to persist as long as ETF outflows continue and the $150 barrier remains unbroken, despite robust on-chain activity in certain ecosystem segments.
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