- SOL rebounds as buyers defend $120–$135 demand zone, signaling steady support.
- Smart money and ETFs show growing accumulation, reflecting cautious but strong conviction.
- Derivative longs dominate while short-side liquidations weaken, supporting potential SOL recovery.
Solana’s SOL is catching attention as both smart money and retail traders show renewed confidence. Positive sentiment is spreading across the market, signaling potential strength ahead. While SOL has recovered from previous lows, the price still faces crucial tests. Observers are watching ETF flows, spot activity, and derivatives positioning closely to gauge whether the momentum can sustain. The current landscape suggests a cautious but growing conviction among informed participants and everyday traders alike.
SOL Rebounds as Buyers Defend Demand
Solana’s price recently bounced from a clear descending channel. Buyers consistently defended the $120–$135 demand zone, showing that support remains strong. Higher lows formed inside the channel before SOL pushed toward the midpoint. Parabolic SAR signals flipped below the price, highlighting short-term momentum shifts. Sellers tested the lower boundary multiple times but failed to force a breakdown. This behavior reflects steady demand absorption rather than weak relief buying.
Resistance lies near $145, with broader structural levels around $170 and $200. However, reclaiming the channel top is essential for a confirmed trend reversal. Until then, Solana trades in recovery mode rather than expansion. ETF activity adds further evidence of growing commitment. U.S. spot Solana ETFs recorded $10.43 million in net inflows in a single day. Cumulative inflows now approach $775 million, while total assets under management exceed $1.02 billion.
Spot market behavior aligns with this narrative. Net negative flows from exchanges, totaling $4.17 million at the time of writing, point to quiet accumulation. Traders consistently withdraw SOL during consolidation phases instead of depositing into rallies. Historically, this reduces immediate selling pressure. Price has not yet reacted aggressively, suggesting participants remain patient and strategic, building positions ahead of confirmation.
Derivatives and Short Absorption Strengthen Recovery
Derivatives data indicates growing confidence among long traders, particularly on Binance. Long positions represent roughly 72.6% of open accounts, while shorts account for 27.4%. The Long/Short Ratio sits at 2.6, reflecting rising conviction without overcrowding. This gradual shift reduces liquidation risk, creating a more stable environment for potential gains.
Short-side liquidations show that downside pressure is weakening. Total short liquidations reached $7.82 million, while long liquidations remained near $0.8 million. Most events occurred on Binance, Hyperliquid, and Bybit without triggering sharp price drops. Sellers appear to struggle near local lows, while disciplined long traders hold steady.
Absorbing this pressure confirms weakening downside momentum but does not guarantee a trend reversal. Overall, the convergence of bullish sentiment, ETF inflows, spot accumulation, and disciplined derivatives positioning paints a cautiously optimistic picture. Solana currently trades in a zone where sellers struggle to regain control, leaving room for upside if price confirms recovery.
