Solana (SOL) stands before a breakthrough opportunity thanks to ETF capital inflows and a stable derivatives market

Solana (SOL) recorded a nearly 5% increase at the beginning of the week, right after a Doji candle appeared in Sunday’s session—a signal that often indicates market indecision before a new move. Derivatives data show that the funding rate is edging up, implying that short position holding pressure has significantly decreased. At the same time, Solana ETFs have continued to register net inflows for the sixth consecutive week, reflecting sustained interest from institutional investors.

Technically, Solana is now approaching a key resistance area; the trendline that has remained intact since October 6 is becoming a focal point for the market.

Stable demand signals more positive sentiment toward Solana

Open interest (OI) on Solana futures continues to hold above the $7 billion mark, reflecting that capital in the SOL derivatives market is largely moving sideways. According to data from CoinGlass, SOL futures OI reached $7.16 billion on Monday, almost unchanged from 24 hours prior.

The notable point lies in the funding rate: a clear increase indicates that the demand to hold short positions has weakened significantly. The funding rate is currently at -0.0018%, a marked improvement from -0.170% on Sunday. If this indicator turns positive, it will signal that bulls are gaining the upper hand and are willing to pay to maintain long positions.

SOL derivatives data | Source: CoinGlass On the other hand, institutional inflows into Solana have shown signs of slowing, with $20.30 million flowing into SOL ETFs for the week—much lower than the $108.34 million from the previous week. However, Friday alone saw an inflow of $15.68 million, contributing to a six-week streak of positive net inflows into Solana ETFs.

SOL ETF data | Source: Sosovalue

Solana accelerates, aiming to test key resistance line

SOL has continued to trade above the demand zone of $121–127 during Monday’s session, while gradually approaching the resistance line connecting the October 6 and October 27 highs, currently near the $140 mark. If SOL can close a daily candle above this level, the market could see a notable bullish breakout signal.

However, Solana’s upward trajectory still faces two major hurdles: the 50-day EMA at $153 and the 200-day EMA at $173, both of which are sloping downward and may create significant selling pressure.

SOL/USDT daily chart | Source: TradingView Technical indicators on the daily timeframe show a clear improvement in trend. The RSI is at 45, leaving ample room to move into the neutral zone, indicating that market sentiment is shifting from bearish to balanced.

At the same time, the MACD line is holding an upward slope above the signal line, reflecting strengthening bullish momentum. However, the narrowing gap between the two lines also suggests a risk of a bearish crossover in the near future.

Conversely, if SOL slips and closes a daily candle below the $121 level, selling pressure could increase sharply, targeting a drop to the April bottom around the $95 mark.

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