Solana (SOL) could see another 7.50% decline, potentially reaching $96, while SkyAI’s $175 million token dump and persistent outflows from U.S. spot ETFs strengthen the bearish outlook.
Solana (SOL), the world's seventh-largest cryptocurrency, appears to be facing a lack of institutional interest and is poised for a potential price correction. The factors driving this bearish outlook for SOL include persistent outflows from U.S. spot ETFs, a Nasdaq-listed firm that sold $175 million worth of SOL, and prevailing market sentiment.
As per the report from the crypto transaction tracker Lookonchain, a Nasdaq-listed firm, SkyAI (SKYA), which held 2 million SOL worth $214 million, has been dumping heavily. The report on X disclosed that the firm has sold 1 million tokens for $107 million recently and may continue selling.
It is worth noting that SkyAI’s average purchase price for SOL was $194. The firm has been selling at a loss and is currently sitting on losses of more than $160 million. So far in October 2026, SkyAI has transferred out 1.57 million SOL worth $175 million.
This report from Lookonchain raises questions about whether the firm has some negative insider information or is expecting a significant drop in SOL’s price. Not only is Nasdaq-listed SkyAI adding selling pressure on SOL’s price, but institutional investors are also following a similar trend.
According to SoSoValue, U.S. spot Solana ETFs have recorded persistent outflows over the past seven trading days, indicating fading institutional interest in the underlying asset.
Meanwhile, the impact of these developments is evident in SOL’s price, which has declined by over 3.51% in the past 24 hours to trade at $104.20. Alongside the price, the asset’s trading volume has also plunged, falling by over 33% to $2.81 billion, suggesting growing fear among market participants.
Amid this negative outlook, a well-followed crypto research firm recently shared a post on X stating that more than $625 million worth of long positions could be liquidated if SOL falls below $90. However, if the price rises above $125, nearly $1.24 billion worth of short positions could be liquidated.
This report by the expert hints at sellers' dominance and further suggests that traders potentially eye a price decline.
Looking at TradingView’s daily chart, SOL’s short-term bias appears bearish and is poised for a potential price decline, as the asset has recently broken down a key support level of $109. The daily chart shows that this level previously acted as support, but following the breakdown, it turned into resistance and now acts as an area of selling pressure.
Based on the current price action, if SOL remains below the $109 level, it could continue its downward move, potentially falling another 7.50% to reach $96. However, if the token reclaims the $109 level, the bearish thesis could be invalidated. In this scenario, the asset may resume its upward move.
As of now, SOL’s Average Directional Index (ADX) reads 30.32, above the key threshold of 25, indicating a strong trend. Given the prevailing bearish price action, the asset could continue its downward move in the coming days.
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