Solana (SOL) appears to be on the verge of a significant rebound, signaling a potential recovery as market sentiment shifts. After experiencing a sharp correction earlier this month, SOL’s technical indicators and rising institutional interest suggest that the cryptocurrency may soon challenge higher resistance levels, potentially reaching $250 in the coming weeks.
Key takeaways from the current market analysis include:
- •Solana’s recent bounce from support at $130 hints at a possible ascent toward $250.
- •Open interest and spot buying activity are rising, indicating renewed demand from traders and investors.
- •Institutional inflows into Solana ETFs have surged, with $390 million accumulated, reflecting growing confidence in SOL’s future prospects.
SOL’s Market Structure Indicates a Potential Rebound to $250
Since November 11, Solana has demonstrated a classic V-shaped recovery pattern on the four-hour chart, following a 25% plunge from a high of $173. This swift rebound has been supported by increased bullish momentum, evidenced by the relative strength index (RSI), which has risen from 28 to 50 since November 13, signaling growing buying pressure.
The price is targeting the neckline of the pattern near the $170 supply zone, representing roughly a 22% upside from current levels. A successful break above this resistance could fuel further gains, with the possibility of SOL reaching its prior support-turned-resistance at $250, a level that has historically prompted strong rallies.
Looking at the longer-term Weekly chart, $130 remains a significant support level. Historically, rebounds from this level have led to explosive rallies: a 108% surge to $265 from $127 between September and November of 2024, and a 98% rally to $250 from $130 during mid-2025. If these historical patterns repeat, SOL could potentially surge 80% from current levels, aiming for $250.
Additionally, the RSI indicator shows oversold conditions on lower timeframes, often a precursor for sharp reversals. If SOL can reclaim the 20-day EMA at around $160, a move toward $180-$200 could be within reach, reinforcing the bullish outlook.
Market Demand Rises with Increased Futures and Spot Activity
Data from CoinGlass reveals that Solana’s futures open interest has increased by 5% in the past 24 hours, reaching $7.3 billion. Parallel to this, positive shifts in perpetual funding rates — now at 0.0059% from a negative -0.0001% — suggest renewed bullish sentiment among traders.
The net taker volume has flipped positive, indicating greater buying activity at current levels. Moreover, spot trading volume and cumulative demand are rising, highlighting a healthy, spot-driven recovery trend that could support further price advances.
Institutional Interest Surges with ETF Inflows
Solana exchange-traded funds (ETFs) continue to attract institutional investors, with $8.26 million added on Monday alone. Overall, ETF inflows now total approximately $390 million, covering more than 513 million in total net assets. This consistent inflow underscores strong institutional confidence in Solana’s long-term prospects.
The recent launch of VanEck’s Solana ETF and upcoming listings are expected to further bolster investor enthusiasm. Meanwhile, network metrics reflect increasing activity, with an 18% rise in daily active addresses and a 9.1% increase in daily transactions over the past month, pointing to increasing adoption and usage.
As on-chain data and revenue from decentralized applications reinforce Solana’s steady growth, the outlook remains bullish. However, investors should stay cautious, monitoring technical signals and macro market conditions as the crypto markets continue to evolve.