Exploring the Next Market Trends Through Solana's Technical Signals and ETF Inflows

Institutional Capital Inflows Suggest Bullish Sentiment Toward Solana

Over the past week, Solana-related index ETFs have recorded notable capital inflows. According to recent data, SOL-based ETF products achieved a net inflow of over $11 million in a week, surpassing the total inflows of Bitcoin and Ethereum blockchain ETFs during the same period. This pattern of inflows indicates that large institutions are increasing their long-term interest in Solana, rather than just short-term speculative demand.

The current SOL price is $138.84, up +2.76% in 24 hours. The circulating market cap has reached $78.34B, confirming that the market size is steadily expanding. Such timing of capital inflows typically functions as a price support factor and tends to lead to reduced volatility.

Falling Wedge Pattern Indicates Pre-Breakout Phase

From a technical analysis perspective, a noteworthy pattern has formed on the 8-hour chart of SOL/USDT. It is a descending wedge structure formed between the October high of $235–240 and the low of $120–122. This pattern suggests that selling pressure is diminishing over time, and as the compression progresses, significant price movements are imminent.

Currently, Solana’s price is trading within the $126–128 range, very close to the wedge’s apex. Falling wedges are known to form during the final stages of a downtrend, and price compression within this pattern is often considered a precursor to reversal. Based on the measured move from the wedge, an upward potential of approximately $59 can be anticipated, with the $185–190 area as a possible target.

Momentum Indicators Suggest Buyer Recovery

Looking at the 4-hour chart’s momentum indicators, a clear bullish divergence is observed. Specifically, while the price is making lower lows, the momentum indicator is making higher highs. This divergence indicates that sellers are gradually losing control and buyers are regaining strength.

The RSI is currently around 50, suggesting neutral momentum, while the MACD remains in positive territory, confirming that the downward trend is weakening. The combination of these indicators forms a typical pre-breakout scenario from a compression pattern. Traders generally wait for confirmation through a breakout of the trendline and increased trading volume.

Short-Term Trading Range and Key Levels

Currently, Solana is consolidating within a range of $120.00–130.00, with multiple resistances observed near $129.00–130.00. However, there is no significant selling pressure at these levels.

Recent support levels are around $123.50–124.00, with stronger support in the $120.00–121.00 area. The initial resistance levels are near $127.50–130.00.

Important decision points for traders are as follows: a clear close above $130.00 suggests a shift to a short-term bullish trend. Conversely, a close below $120.00 opens the possibility of targeting lower levels. Currently, the dominant theme is range-bound trading, and traders should focus on the volume trends and moments when prices approach these levels again.

The ongoing institutional inflows combined with technical compression and divergence patterns suggest that Solana is approaching a critical turning point.