Technical Analysis Shows Critical $120 Support Level

TLDR

• Over $120 million has been bridged to Solana from other blockchains in the past 30 days
• Solana-based memecoins like FART, POPCAT, and BONK have seen double-digit price rallies recently
• Canada launched the first spot Solana ETFs in North America on April 16
• SOL is forming an inverse head and shoulders pattern with potential 40% upside toward $190
• SOL must stay above $120 to maintain bullish momentum; dropping below could send price back to $100 or lower

Crypto investors have bridged more than $120 million in liquidity to Solana from competing blockchains over the past 30 days. This signals a renewed confidence in the network that had previously faced challenges.

The highest amount came from Ethereum at $41.5 million, followed by $37.3 million from Arbitrum, according to data from Debridge.

Users on Base, BNB Chain, and Sonic moved $16 million, $14 million, and $6.6 million respectively to the Solana blockchain.

This influx of liquidity marks a reversal from Solana’s recent troubles. Following Argentina’s LIBRA memecoin scandal, which involved President Javier Milei, Solana had seen investors move $485 million to other blockchains including Ethereum and BNB Chain.

The current return of funds to Solana comes alongside double-digit price rallies from Solana-based memecoins. POPCAT rose 79%, FARTCOIN jumped 51%, BONK increased 25%, and WIF gained 21% over the past seven days.

Technical Analysis Shows Mixed Signals

From a technical perspective, Solana’s price action shows mixed signals that could affect its short-term movement.

SOL must close a daily candle above $147 to confirm a bullish trend shift. The cryptocurrency currently remains under the $140 level, with the 50-day exponential moving average acting as strong resistance.

On lower timeframes, SOL has exhibited a bearish divergence between price and the relative strength index (RSI). This pattern has historically signaled correction periods for Solana in 2025.

The 4-hour chart shows SOL has formed an inverse head and shoulders pattern. If confirmed, this textbook bullish reversal pattern points to a potential 40% upside toward $190.

SOL has reclaimed its 200-4H exponential moving average as support, with momentum building steadily. Its RSI levels support further upside, with no immediate signs of overbought conditions.

Critical Support Levels to Watch

Traders should watch the $120-$125 price zone carefully as it represents the point of control (POC) – the area where most of SOL’s annual trading volume has occurred.

If SOL drops below $120, it could plunge back to the $100 level or lower. The last time SOL broke below this critical support, the price dropped to $96.

Glassnode reported a major shift in Solana’s realized price distribution, with over 32 million SOL (5% of total supply) bought at the $130 level in recent days. This suggests $130 could become a strong support level.

#Solana’s URPD shows a major shift in cost basis over the past two days, forming the largest supply cluster (>5%) at $129.79 with over 32M $SOL. This zone could act as a support during future drawdowns, reflecting high investor engagement at this price level. pic.twitter.com/mrunKSjKZL

— glassnode (@glassnode) April 15, 2025

Below $129, there are 18 million SOL (3%) at $117.99, while above, 27 million SOL (4.76%) sit at $144.54. In the short term, $144 could act as resistance and $117 as the lower bound of the price range, with $129 serving as the key pivot zone.

Canada Launches First Spot Solana ETFs

In a major development for institutional adoption, Canada became the first country in North America to offer direct exposure to SOL through regulated investment products.

On April 16, several financial firms including 3iQ Corp., Evolve Funds, CI GAM, and Purpose Investments launched spot Solana ETFs on the Toronto Stock Exchange following approval from the Ontario Securities Commission.

“We are very proud and excited that Canada is [a leader] again in crypto,” said Vlad Tasevski, chief innovation officer at Purpose Investments.

These ETFs differ from US offerings by giving investors direct access to SOL’s spot price rather than just tracking Solana futures. This development mirrors Canada’s earlier lead in launching spot Bitcoin and Ether ETFs in 2021.

The approval and launch of these ETFs could bring increased institutional interest and investment flows to Solana, potentially supporting price growth in the coming months.