Solana (SOL) shows signs of recovery, with a V-shaped bounce, rising RSI, and increased institutional demand, eyeing $250 target.
Recent market data points to $130 as a possible bottom for Solana (SOL), suggesting a potential recovery.
Key technical indicators, chart patterns and on-chain data show that SOL might soon rebound. Traders are now eyeing the $250 mark as a potential target if the current momentum continues.
SOL’s Price Action and Market Structure
SOL’s price action has formed a V-shaped recovery since it reached $130 on November 11. After a sharp decline from $173, the price quickly bounced back. This type of price pattern often signals a potential reversal and sets the stage for further gains.
The Relative Strength Index (RSI) has also improved from 28 to 50, suggesting increased buying pressure.
Previous rebounds from this level have led to significant rallies, such as a 108% increase from $127. If history repeats itself, SOL could see a similar recovery toward the $250 level, marking an 80% potential upside from current prices.
The price is now facing resistance at $170, which traders are closely monitoring. A break above this level could signal a clear path toward higher targets, strengthening the case for a continuation of the rally.
Rising Demand and Futures Activity
Data from CoinGlass shows that Solana’s futures market has seen a 5% increase in open interest over the last 24 hours.
This suggests that more traders are positioning themselves for a potential upward move. A positive funding rate indicates that there is growing confidence in SOL’s price recovery.
Spot market activity is also showing signs of increased demand. Net taker volume has turned positive, signaling that more buyers are entering the market at lower prices.
Additionally, the cumulative volume delta (CVD) for spot trades is rising, indicating that both spot and futures markets are contributing to the recovery.
These indicators point to a healthy market environment for SOL. As demand continues to build, the probability of a strong rally increases.
Related Reading: Largest Corporate Solana Holder Forward Industries Moves 1.8 Million SOL To Exchanges
Institutional Interest and Solana ETFs
Institutional interest in Solana is rising, with ETFs playing a significant role in this growth.
Data from SoSoValue reveals that US-based Solana ETFs recorded $8.26 million in inflows on Monday. These continued inflows bring the total to $390 million, signaling strong institutional demand for SOL.
The recent launch of VanEck’s Solana ETF has added momentum to this trend.
More ETFs are expected to launch soon, which should further boost market sentiment. The growing institutional interest provides an additional layer of support for SOL’s price, helping to sustain the recovery.
Solana’s on-chain metrics also support a bullish outlook.
There has been an 18% increase in daily active addresses and a 9.1% rise in daily transactions. These figures suggest that the Solana network is strengthening, which should encourage further investor confidence and contribute to the price upside.