As the cryptocurrency market fluctuates, Solana (SOL) is showing renewed vigor after a turbulent period. Trading at $138 on December 10, the token has gained over 5% in just 24 hours, indicating a potential reversal after dipping to an 8-month low of $125 earlier this month.
One notable factor contributing to Solana’s resurgence is the impressive capital inflow into ETFs tracking the asset. In the last week alone, these funds have added $20 million, marking six consecutive weeks of inflows. The Bitwise Solana Staking ETF leads the pack with approximately $660 million in assets under management, a clear testament to the growing interest in SOL-linked investment products.
Alongside this positive trend, Solana’s trading volume surged to $6.97 billion, reflecting a robust 34% increase from previous levels. This jump is particularly significant after the asset struggled to maintain support around the $130 mark following its recent lows.
While recent ETF activity signals a growing confidence among investors, market analysts remain cautious. The Realized Profit-to-Loss Ratio for Solana has been below 1 since mid-November, indicating that more traders have been closing positions at a loss rather than taking profits. Analysts at Altcoin Vector emphasize that this “full liquidity reset” typically signifies a market bottom prior to the start of a new cycle.
In terms of technical indicators, SOL needs to break the $160 mark to confirm a bullish trend reversal. Historical data suggests that sustained trading volumes exceeding $10 billion are essential for generating meaningful momentum. At the moment, volumes are hovering around $4 billion, equating to less than 6% of the circulating market cap.
The impending Breakpoint 2025 Conference, scheduled for December 11-13, may further stimulate interest in Solana as it is expected to unveil potential partnerships and real-world asset integration initiatives.
As Solana is currently positioned above the lower Bollinger Band and rallying towards the middle band at $145, the market eagerly awaits developments that could lead to a significant price breakout. The relative strength index is at a neutral 48, while the MACD indicator shows signs of turning positive, suggesting that an upward momentum may not be far off.
A successful close above $145 could pave the way to testing the crucial resistance at $160, and beyond that, the bulls will likely set their sights on achieving the next target of $200. In a market that can shift rapidly, the interplay of inflows, trading volume, and technical levels will dictate the future trajectory of Solana in the upcoming weeks.
