Solana Price Loses Key Support as ETF Outflows Surge Following the Alpenglow Upgrade

Solana (CRYPTO: SOL) extended its sell-off, falling to its lowest level since August 22. The token has entered a technical bear market after dropping 28.2% from its October high. The downtrend has persisted as ETF outflows accelerated following the Alpenglow upgrade.

Solana ETF Outflows Are Continuing

Demand for Solana ETFs has continued falling this month. SoSoValue data shows that these funds had outflows worth $26.2 million this week. These funds have had outflows in the last five consecutive weeks, bringing the total outflows to over $163 million.

Bitwise’s Solana ETF lost $14 million in assets on Friday, while Grayscale’s GSOL and Morgan Stanley’s MSOL lost $5.4 million and $4.3 million, respectively. In total, these funds have had $1.4 billion in net inflows since their inception and now hold $1.31 billion in assets. 

Solana staking outflows have also continued to rise. The staking ratio has dropped to 68.26% from last month’s high of 70%. The total staked tokens have dropped to 434 million from 440 million last month. These numbers mean that demand among investors continues to fall this month.

Notably, these developments are happening after the developers launched the Alpenglow upgrade. This upgrade replaced TowerBFT and the Proof of History consensus with a new system known as Votor. Its goal is to target the time to finality to about 150 milliseconds. 

Solana replaced its consensus protocol in October. Alpenglow went live on mainnet on the 21st, targeting ~150ms finality.

October was a month of records across network speed, tokenized assets, payments, and institutional access.

Here are a few figures that mattered: pic.twitter.com/noXLQf97K2

— Solana (@solana) November 6, 2026

Solana’s weakness has also coincided with the ongoing decline of other cryptocurrencies. Bitcoin (CRYPTO: BTC) dropped to $74,766, down by 14.35% from the highest point in October. Other tokens like XRP (CRYPTO: XRP) and Cardano (CRYPTO: ADA) have also dropped, while the Crypto Fear and Greed Index has moved to the fear zone.

Solana Price Has Dropped Below 50% Retracement Level

The daily chart shows that SOL price has been in a strong sell-off in the past few weeks, moving from $124.80 in October to the current $89.63. It has now slumped below the important support level of $92.38, the 50% Fibonacci Retracement level.

The coin has slumped below the 50-day and 200-day Exponential Moving Averages (EMA). Also, the Relative Strength Index (RSI) has dropped and is moving to the oversold level.

Therefore, the path of the least resistance is downward, potentially to the 61.8% Fibonacci Retracement at $84. A drop below that level will point to more downside towards the 78.6% Fibonacci Retracement at $73.8.

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