The cryptocurrency Solana (SOL) is showing signs of a staged recovery, having rebounded above the $160 mark after dipping to around $150.
The catalyst appears to be a sustained streak of exchange-traded fund (ETF) inflow, the kind of institutional signal that often galvanises momentum. But while the demand story is encouraging, underlying technical and macro challenges mean bulls may still have a fight on their hands.
This inflow streak stands in stark contrast to the red-ink performance of Bitcoin and Ethereum ETFs, which together suffered substantial outflows in the same period. The divergence suggests that some institutional capital is rotating toward altcoins like Solana in search of higher-growth opportunities.
The positive ETF flows lend external legitimacy and fresh demand, providing SOL with a firmer base to attempt a rally beyond the $160 zone.
Despite the steady inflows, Solana’s technical setup remains uneven. The token is still trading below key moving averages, including the 9-day simple moving average ($175.85), which hints that the bearish control is not yet fully relinquished.
Immediate support lies around $158, with a more substantial floor near $150, a level that recent buyers defended. On the upside, reclaiming $175 (+) would be a meaningful shift, potentially exposing a move toward $180.
However, macro-economic and on-chain headwinds raise caution flags. The U.S. government shutdown, now extending for dozens of days, has caused market uncertainty and depressed the Fear & Greed Index to extreme fear territory (24).
If bulls can defend the $155-$160 support zone and continue to harness ETF inflows, Solana may press toward the $172-$177 resistance zone and possibly test $180. However, failure to hold support around $150 could trigger a deeper correction, with downside risk toward $132 or lower.
In short, the inflow streak is a meaningful bullish input, but it’s not yet sufficient alone to guarantee a sustained breakout. Traders and investors will want to watch whether the demand story translates into a stronger price structure and whether macro risks abate.
Cover image from ChatGPT, SOLUSD chart from Tradingview
