Significant Movement Expected in Solana (SOL): Key Levels to Watch
Solana has regained a crucial support level, with analysts suggesting potential price targets ranging from $250 to $2,000 as interest from institutions increases.
Solana (SOL) has bounced back from a crucial technical support level, signaling the potential for significant price movement. Currently, SOL is valued at approximately $142, reflecting a 4% increase over the past 24 hours, while it has experienced a nearly 1% decline in the last week according to CoinGecko data.
$130: An Essential Level for Direction
Analyst Crypto Patel highlighted that SOL rebounded from the $130 support level. This bounce coincides with both a horizontal support zone and a long-term rising trendline visible on the weekly chart, which are known to act as significant turning points.
$SOL reclaimed the $130 support with a clean bounce. Sustained acceptance above $130 reactivates the $250 upside target. Failure to hold converts structure bearish, opening downside toward the 0.382 Fib retrace at $75 and the 0.5 Fib level at $50. — Crypto Patel
Maintaining a position above $130 could help sustain momentum and bring attention to targets near $250 and $293, which have previously acted as resistance levels. Conversely, if SOL closes below $130 once again, it might trigger a bearish trend, leading to potential declines to $74 and $50, identified as key Fibonacci retracement levels.
In addition, CryptoCurb has found a large Cup and Handle pattern forming on the long-term chart for SOL. Achieving a price stability above the $250-$300 range is crucial to trigger a movement toward $2,000.
Market Stress Reflects on-Chain Data
On-chain analyst Ali Martinez indicated that SOL has recently entered the capitulation zone on the Net Unrealized Profit/Loss (NUPL) indicator, suggesting many holders might be at a loss currently. Such movements into this zone were previously associated with longer-term price bottoms.
“Solana usually bottoms when investors capitulate—and that’s what we’ve seen over the past two weeks,” said Ali.
The resulting market activity will determine if this marks a true low.
Increasing Institutional Interest and ETF Flows
There has been a noticeable uptick in institutional involvement as Upexi Treasury, holding over 2 million SOL, pursues up to $23 million in private placements to bolster operations and enhance SOL exposure.
Regarding ETFs, Solana ETFs recorded $531 million inflows during their launch week, fueled by 7% staking yields and reduced fees compared to Bitcoin ETFs. However, a recent outflow of $8.1 million was noted on November 26, with total assets under management still around $918 million.
As reported previously, a spot Solana ETF has gained regulatory approval in Hong Kong.
