Solana (SOL), one of the leading layer-1 blockchains, is showing signs of renewed momentum amid ongoing institutional interest and a favorable technical setup. As of today, SOL is trading around $130, consolidating near the upper boundary of a multi-month falling wedge pattern on the daily chart.
Analysts suggest that a decisive breakout could signal the start of a significant rally, potentially targeting levels above $160.The cryptocurrency has faced volatility throughout 2025, peaking earlier in the year before entering a corrective phase. However, recent price action indicates building bullish pressure, with SOL defending key support zones around $120–$130.
A key driver behind the optimistic outlook is the robust demand for US-listed spot Solana ETFs, which launched in late October 2025. Despite periods of price consolidation, these funds have seen consistent weekly net inflows, pushing total assets under management (AUM) close to $1 billion.
Data from tracking platforms like SoSoValue highlights persistent positive flows, with no significant weekly outflows reported since inception. This trend suggests that institutional investors are actively buying on dips, viewing current levels as an attractive entry point for exposure to Solana’s high-performance ecosystem.
In the derivatives market, trader sentiment has turned increasingly bullish. The long-to-short ratio for SOL futures recently climbed above 1.0, reaching levels not seen in over a month, indicating more positions betting on upward price movement.docs.coinglass.com
Solana long-to-short ratio trends, reflecting shifting trader sentiment.
From a chart perspective, Solana has been confined within a falling wedge since early October—a pattern typically considered bullish as it reflects diminishing selling pressure. The Relative Strength Index (RSI) on daily timeframes is trending upward, approaching the neutral 50 level, which could confirm fading bearish momentum if sustained.
A clean break above the upper trendline, accompanied by increased volume, could validate the pattern and open the door to higher targets. Conservative estimates point to initial resistance near $140–$150, with a stronger move potentially pushing toward $160 or beyond in the coming weeks.
While risks remain—including broader market dynamics and potential pullbacks to lower supports—the combination of technical convergence, institutional inflows, and improving derivatives sentiment paints a constructive picture for SOL heading into the new year.
Investors will be closely watching for confirmation of the breakout in the days ahead, as it could mark a pivotal shift in Solana’s 2025 trajectory.
Naorem Mohen is the Editor of Signpost News. Explore his views and opinion on X: @laimacha.
Naorem Mohen
View More PostsNaorem Mohen is the Editor of Signpost News. Explore his views and opinion on X: @laimacha.
