SOL Outflows Drop 83%, But One Factor Keeps Solana Price in Check

Core Insights - Solana (SOL) is experiencing a downward trend, with a 4% decline over the past week and nearly 19% this month, currently trading around $186 within a range of $178 to $209 [1] - Large investors are still exiting positions, as indicated by the Chaikin Money Flow (CMF) remaining below zero, which caps Solana's upside potential [2] - The launch of the Bitwise Solana Staking ETF (BSOL) attracted $132 million in inflows, but these have not translated into real spot market demand, contributing to the continued price decline [3] Holder Activity - Solana's Holder Net Position Change indicates a significant reduction in net outflows from long-term wallets, improving from -11.43 million SOL on October 3 to -1.91 million SOL by October 31, marking an 83% reduction [4] - Although holders are still selling, the pace has slowed, suggesting a positive shift in Solana's long-term structure [5] Price and Market Sentiment - The price chart for Solana remains bearish, with the token trading within a broadening rising wedge pattern, which typically signals exhaustion and potential breakdown [6] - The lower trendline of this pattern has been under pressure since mid-October, with a notable price action of making lower highs while the Relative Strength Index (RSI) shows higher highs, indicating a divergence in buying momentum [7]