Solana Loses $5.7 Million in 7 Days; Santiment Says Bottom Is Near

▲ Solana (SOL)/ChatGPT-generated image

Solana (SOL) is facing aggressive selling pressure from institutional investors, signaling capitulation that symbolizes extreme market fear. Paradoxically, analysts suggest that this wave of panic selling may be a precursor to the formation of a market bottom.

On February 18, cryptocurrency-focused outlet BeInCrypto reported that $5.7 million flowed out of Solana-based investment products over the past week, a decisive indicator that investor patience has reached its limit. Data from digital asset manager CoinShares shows that the outflows align with a broader $1.26 billion sell-off across the digital asset market, including Bitcoin (BTC) and Ethereum (ETH). Bitcoin alone saw $1.1 billion in halted inflows, while Ethereum experienced $82.8 million in outflows, highlighting a sharp contraction in overall market liquidity.

According to on-chain analytics firm Santiment, investor sentiment toward Solana has plunged to its lowest level in months, entering a classic capitulation phase. The weighted sentiment index has fallen deeply into negative territory, while negative mentions across social media have surged. Historically, such collective fear has been viewed as a cleansing process that shakes out weaker hands and often provides a strong technical foundation for price rebounds.

Solana’s price has recently slipped below the $140 level, putting its psychological support line under threat. As losses from its peak widen, retail investors have accelerated sell-offs, yet some whale investors are reportedly viewing the downturn as a buying opportunity. Market participants are closely watching for a slowdown in institutional outflows and a turning point in sentiment indicators as potential signals of a price recovery.

Although global macroeconomic uncertainty and trade tensions continue to pressure the digital asset market, Solana’s ecosystem scalability is still regarded as a strong fundamental. Network activity and developer inflow metrics remain resilient despite the price decline, offering positive signals for long-term investors. Attention across the global financial industry is now focused on whether the current capitulation signal will prove to be a short-term pain preceding the buildup of momentum for a new upward cycle.

Analysts largely interpret the institutional sell-off surrounding Solana not merely as profit-taking but as a temporary phenomenon linked to portfolio rebalancing. At a time when the market is mired in extreme pessimism, this moment may serve as a critical inflection point for investors who believe in the structural growth of the digital asset market.

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