Key Insights:
- Solana price could rebound to $145 if the weekly TD buy signal confirms.
- Trendline support from 2023 remains intact, and the way is clear for a move to $150.
- ETF flows indicate rotation into SOL, suggesting a possible climb back to $140.
Solana price is stabilizing above a key support area after a volatile week in the broader crypto market. The asset is reacting to technical signals, alongside institutional ETF flows that are still affecting short-term sentiment. Analysts are now evaluating the possibility of SOL price reversal or further downside risk.
Solana Price Responds to Weekly Buy Signal
Solana price trading near $127 as a weekly TD Sequential buy signal appears. Analyst Ali stated that the indicator has successfully captured large Solana trend reversals since March 2023. The tool identified tops and bottoms with accuracy during previous cycles. Ali noted the finding that the present signal appears after heavy selling pressure in recent sessions.
The weekly chart indicated a sequence ending in a “9,” which typically corresponds to exhaustion. This pattern came into play at the 2023 bottom, then once again at the top of early 2024. A similar structure is currently sitting near the current support region. Ali said this setup increases the likelihood of an early trend reversal should buyers step back in.
The weekly candles also revealed a series of declining lows that are nearing a key long-term zone. This area turned down several pullbacks during the last year. Ali added that the signal becomes more reliable when volatility compresses, as seen in the recent weekly structure. The indicator suggests possible near-term relief rallying.
Support Trendline Holds Following Correction
Furthermore, Solana price is once again testing another major ascending support trendline, which has held as valid support since late 2023. Ali shared another chart with three successful rebounds from this rising trendline. Each bounce featured multi-week rallies, including the strong breakout in early 2024.
The chart showed a trendline starting near $16 in 2023 and rising through several higher lows. The current test near $125 is the fourth interaction with the line. Historically, this level has marked strong accumulation before massive upside extensions. Ali said holding this line could bring a similar reaction.
The trendline also coincided with a high volume support block identified in several exchange charts. This confluence gives the present level another importance. The structure remains intact, which suggests a higher probability of stabilization. Ali pointed out that a clean close above the trendline would strengthen the bullish case.
Momentum Indicators Point to a Double Bottom
A separate view from IncomeSharks showed OBV and price attempting to find support. IncomeSharks said the best scenario would be a double-bottom formation above the current range. This would prevent an even worse breakdown, which would subject the asset to a price of $100. The chart shows a broad horizontal area that may be a possible reversal base.
OBV has contracted, indicating a slight price divergence. According to IncomeSharks, this change is less aggressive selling than during previous sessions. The asset is combined with the horizontal structure, and it may be about to bounce locally. The higher low on the four-hour chart is the confirmation that the trader added.
Solana price reached as high as $123 during the most recent market drop before recovering to $128. Trading volume has declined by 3% over the last 24 hours. The volume decreases, which implies fading panic pressure after the sharp decline. Price stability between $123 and $128 now defines an important near-term range for confirmation.
ETF Flows Reflect Rotation Despite TSOL Redemptions
Meanwhile, institutional flows are mixed from Solana ETFs. SoSoValue data indicated that Solana ETFs had a net outflow of $13.55 million on December 2nd. This was the largest outflow in the history of this river. The primary reason was a $32.54 million redemption from the 21Shares Solana ETF (TSOL). TSOL has now released three consecutive outflow sessions.
Despite the outflows in TSOL, other Solana ETFs saw inflows. Bitwise’s BSOL gained $17.18 million while Grayscale’s Solana ETF gained $1.82 million. This pattern indicates rotation and not withdrawal from the entire market. Combined, the Solana ETF AUM is currently over $790 million, indicating continued institutional interest.
The contrary flows also occur during a wider rotation towards high-growth altcoins. Analysts observed a shift by institutions from spot Bitcoin and Ethereum ETFs to Solana and XRP. This rotation continued during market weakness.
Moses K is a crypto journalist covering markets, regulation, and blockchain trends. He has written for The Coin Republic, Coinchapter, Cryptopolitan, Cryptotale, Coinspeaker, and MPost. Known for his concise, data-driven reporting, Moses focuses on price analysis, on-chain metrics, and policy developments shaping the global digital asset landscape.