Solana (SOL) is indeed navigating a significant correction, with its price decline reflecting a mix of technical pressures and broader market sentiment. However, this is occurring alongside strong institutional developments, creating a complex landscape for investors.
Assessing the Current Market Pressure
Solana’s price has faced considerable selling pressure, dropping to $163.46 on November 4, 2025, which confirms a over 5% decline in 24 hours and a steeper fall from its higher levels in early October. This downturn has occurred even as major financial firms like Bitwise and Grayscale launched Spot Solana ETFs, with one fund attracting hundreds of millions of dollars in inflows shortly after its debut. This divergence highlights that positive fundamental news is currently being overshadowed by technical and macroeconomic factors.
The technical picture supports the bearish short-term outlook. Key indicators show the Relative Strength Index (RSI) at 44.292, signaling selling pressure without being in oversold territory. Furthermore, the moving averages are aligned in a bearish configuration, with the price trading below major averages like the MA50 at $172.352 and the MA200 at $186.985. This alignment often indicates that the path of least resistance is to the downside for the moment.
Weighing the Bearish and Bullish Forces
The market is currently a battleground between negative technical signals and positive long-term fundamentals.
On the bearish side, the concentration of short positions in derivatives markets has created an environment ripe for volatility. While this has contributed to the downturn by triggering liquidations of overleveraged long positions, it also sets the stage for a potential short-term rebound if these bearish bets are forced to close. This technical setup is compounded by a broader “risk-off” sentiment across global markets, which has dampened enthusiasm for speculative assets like cryptocurrencies despite strong project-specific news.
On the bullish side, the institutional case for Solana has never been stronger. The successful launch of Spot Solana ETFs represents a major milestone for institutional adoption. Beyond ETFs, the network’s underlying health is robust, with projects like Western Union building on its blockchain and the network demonstrating high annualized revenue, showcasing real-world utility and growth.
Key Levels to Watch and Strategic Outlook
For traders and treasury managers, navigating this volatility requires a clear-eyed view of critical price levels.
The most immediate support to watch is the $163 zone, a level that Solana is currently testing. A decisive break below this could open the path for a deeper correction toward the next significant support near $155. On the upside, the price faces immediate resistance in the $180 zone, with a more significant barrier at $191. A sustained break above $191 could signal a return of bullish momentum and open the door for a move toward $200.
In the near term, the market’s direction will be determined by whether the key support at $163 holds. A rebound from this level, potentially fueled by short covering, could lead to a consolidation phase. However, the failure of this support could extend the current correction. For long-term investors, the current pullback may present a strategic accumulation opportunity, as the fundamental outlook for Solana, bolstered by unprecedented institutional access, remains strong .
