Solana ETF fund absorption continues, trendline convergence imminent, institutional 'buying the dip' signals strengthening

Why Institutional Demand Shows No Signs of Stopping: Viewing Corrections as Opportunities

Looking at the fund flows into the US-listed spot Solana ETF reveals an interesting point. Since its launch in late October, there has been consistent weekly net inflows, and the total assets under management have exceeded $900 million. Notably, during the same period, SOL’s price has been range-bound, yet funds continued to flow in without any outflows.

The positioning in the derivatives market also supports this. The long-short ratio has risen to 1.07, the highest level in over a month, indicating that market participants are betting more on an upward scenario. This suggests that the current price volatility is being interpreted not as a “stop-loss zone” but as an “opportunity to add to positions,” rather than a simple demand recovery.

Technical Signals Seen During the Approach to the Trendline

SOL is currently trading at $122.59 as of Monday and is close to the upper boundary of the descending wedge pattern formed since early October. This pattern features rising lows and falling highs, and a clear breakout above the upper trendline could serve as a strong bullish reversal signal.

The movement of technical indicators indicates a weakening rather than intensifying bearish momentum. The RSI is trending upward around 42, suggesting that downward pressure is gradually easing. However, to confirm a clear bullish signal, the RSI needs to break above the neutral 50 level and enter the buy zone.

Target of $160 upon Upper Resistance Breakout, Re-test of $121.66 if Failed

If the upper trendline is broken, the primary target is set around $160. This level represents a previous major resistance and also marks the end of a technical retracement zone.

Conversely, a failure to break above the resistance and continued correction is also a plausible scenario. In this case, the $121.66 low formed on November 21 could act as the next support level. If this level also breaks, a deeper retracement could occur, making it a critical point for risk management.

The current institutional fund inflows and the bullish bias in derivatives positioning increase the likelihood of an upward scenario, but both directions remain open until technical confirmation is achieved.