Institutional Capital Flees Solana Amid Market Turmoil

Solana is navigating a period of significant market stress. Investors are attempting to identify a price floor following a steep sell-off that pushed the asset to its lowest point in 26 months. Persistent anxiety is being fueled by record-setting withdrawals from institutional investment products and a collapsed merger within the ecosystem. As the price shows tentative signs of stabilization, participants are debating whether the market correction has run its course.

Uncertainty has been compounded by unexpected corporate news. On Monday, Solmate Infrastructure confirmed the termination of its planned merger with RockawayX. The letter of intent was canceled to prevent shareholder dilution and to deploy capital more efficiently. While the companies indicated their strategic operational partnership would continue, this reversal signals a shift in strategy by key infrastructure players, a development the market is viewing with caution.

Futures Market Sees Sharp Correction

The dramatic price decline triggered a substantial unwinding of speculative bets. Open Interest, representing the total value of all outstanding futures contracts, plummeted approximately 40%, collapsing from $8.8 billion to $5.22 billion. In parallel, long positions worth $295 million were liquidated. Analysts interpret this data as an indication that excess speculation has been purged from an overheated market, potentially setting the stage for more organic price discovery moving forward.

Should investors sell immediately? Or is it worth buying Solana?

Historic Outflows Apply Pressure

The core driver of the current weakness stems from the actions of professional investors. Recent data reveals that Solana-linked exchange-traded funds (ETFs) experienced outflows of roughly $11.9 million on February 6. This marks the second-largest single-day withdrawal in the history of these investment vehicles.

This flight of institutional capital correlated directly with a severe price drop. SOL briefly fell to $67, extending its monthly loss to nearly 38%. Although the price stabilized around the $87 mark at the start of the week, it remains a significant distance below its January peak.

Outlook: The $100 Threshold is Key

Despite the pronounced selling pressure, underlying network activity demonstrates resilience. The platform processed 2.6 billion transactions last month, representing a 50% increase in volume. For a sustained recovery to take hold, bulls must now decisively reclaim the psychologically crucial $100 resistance level. Failure to breach this barrier, coupled with a continuation of ETF outflows, risks a renewed test of the support zone near $67.