Solana Price Falls Below $90 as Bullish RSI Divergence Signals Possible Reversal
Solana is trading below $90 as continued selling pressure and weakening institutional demand weigh on its recovery prospects. However, a developing bullish divergence in the Relative Strength Index (RSI) suggests that bearish momentum may be slowing, creating a potential signal for a trend reversal.
SOL was trading near $89.90 after breaking below an important support area. The decline extends a broader correction from October's highs, with the cryptocurrency continuing to establish lower highs and lower lows.
Despite the deteriorating price structure, the RSI has moved higher while SOL has continued to make lower lows. This divergence indicates that selling momentum may be weakening, although it does not confirm that a recovery has begun.
Solana Faces Continued Pressure Below $90
The latest decline has left Solana struggling to regain its short-term moving averages. Its broader price structure continues to favour sellers, while the loss of support has weakened the token's latest recovery attempt.
With buying interest remaining limited, SOL remains exposed to further volatility. The market has yet to show a meaningful improvement in price structure that would indicate buyers are regaining control.
Spot Solana ETFs Record 12 Sessions Without Net Inflows
Institutional investment activity is providing another indication of weak demand. According to the latest market update, U.S. spot Solana ETFs have recorded no net inflows for 12 consecutive trading sessions.
Data shared by market commentator DEMON on November 7 showed that U.S. spot crypto ETFs experienced substantial outflows on November 6. Bitcoin products recorded $412 million in outflows, Ethereum funds lost $93 million, and Solana ETFs registered $25 million in withdrawals.
The more detailed figure cited in the report put Solana ETF outflows at approximately $25.08 million during the latest session, involving Bitwise and other ETF clients.
The extended absence of positive flows suggests that institutional demand has weakened during Solana's correction. Spot ETFs provide traditional investors with an additional route to gain exposure to SOL, making their activity an important indicator of investment appetite.
A return to consistent inflows could help strengthen market confidence. Continued withdrawals, however, may make it more difficult for Solana to establish a sustained recovery.
Bullish RSI Divergence Points to Weakening Selling Momentum
Despite the bearish price structure, Solana's RSI is showing a potentially positive technical signal. While SOL has continued to form lower lows, the RSI has been trending upward, creating a pattern known as bullish divergence.
Market commentator Sweep highlighted the development in a November 6 post on X, arguing that the difference between price movement and RSI direction could indicate that spot sellers are becoming exhausted.
Bullish RSI divergence can emerge when selling momentum begins to weaken even as an asset's price continues declining. The pattern may precede a recovery, but it is not a guarantee that prices will reverse immediately.
For Solana, stronger buying participation and an improvement in its price structure would still be needed to support a more convincing recovery signal.
Can SOL Recover From Its Recent Decline?
Solana's near-term outlook remains uncertain as weak ETF flows and continued downward price movement create obstacles for buyers. The lack of fresh institutional demand also raises questions about how quickly the market can regain momentum.
At the same time, the improving RSI provides a counter-signal to the ongoing decline. If selling pressure continues to ease and spot buying demand returns, SOL could attempt to stabilise and recover some of its recent losses.
The key question is whether the bullish divergence attracts new buyers or simply marks a temporary slowdown in the broader correction. Until stronger demand and a clearer price reversal emerge, Solana remains vulnerable despite the improving technical indicator.
source: coinpedia
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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