Solana (SOL) has retreated from a recent sell wall at $110, currently testing the $100 threshold, even as exchange-traded funds (ETFs) record their highest monthly inflows since November 2025. The token's price action has been pressured by shifting expectations regarding Federal Reserve interest rate decisions following the Jackson Hole summit last week.
Analysts have increased the probability of a 25 basis point rate hike in September from 36% to 66%. This shift in market expectations triggered a wave of selling that pushed SOL down to its current level. Trading volumes have declined over the past few days, dropping to $3 billion after temporarily reaching $8 billion on August 21. This reduction in volume suggests that investor interest at the current price level remains weak, potentially setting the stage for a move to lower areas where buy orders may be concentrated.
Despite the price retreat, Wall Street firms have continued to purchase SOL through ETFs. Data from SoSoValue indicates that net inflows to these vehicles have been positive for 11 consecutive days. The total amount flowing into SOL ETFs in August reached $193 million, marking the highest monthly intake for these funds since November 2025, when the token traded around $140.
On-chain metrics also show signs of increased network activity. Santiment data reveals a crossover between the 30-day and 50-day moving averages for active users, a signal that has historically anticipated strong price movements. Additionally, application fees within the Solana ecosystem spiked last week. Decentralized applications (dApps) collected a total of $305 million during that period, representing a 50% jump compared to the previous week. Decentralized exchange (DEX) volumes also rose from $51 billion to $61 billion as traders positioned for potential bullish momentum.
Technical indicators on the daily chart show the price struggling to maintain its position above $100. The Relative Strength Index (RSI) has shown a bearish crossover with its signal line, indicating that positive momentum is weaker than it was a week ago. This trend favors a continuation of the downtrend toward $90, which analysts identify as a key support level due to its alignment with former horizontal resistance and the 200-day exponential moving average.
If the $100 area holds, SOL could resume its rally toward $120. This target implies a 20% upside potential for the token in the near term. The current market dynamics reflect a tension between short-term technical weakness and sustained institutional accumulation through ETF products.