Solana's consolidation last week ended when the upward trend did not hold, and the return to $150 was delayed. SOL has since moved cautiously, waiting for stronger confirmation regarding the direction.
Recent signs in the chain and institutional operations indicate that investors are positioning themselves for a rebound, which may allow for a new price increase towards the end of the year or the beginning of January.
Solana investors have an ETF leash.
The Solana ecosystem is launching a new type of catalyst through 'Creator ETFs', namely Bands, on the Bands.fun platform. These products differ from traditional exchange-traded products. They operate as programmable portfolios directly on the Solana blockchain, with content chosen by creators, analysts, or influencers.
Creator ETFs can combine tokens or NFTs and automatically balance their content according to predetermined rules. As their usage becomes widespread, this may increase chain activity and the number of transactions. Greater network usage often supports price recovery by strengthening SOL's demand as a utility.
Institutions see potential
Exchange balances provide additional positive signals. The amount of Solana on centralized exchange accounts has sharply decreased over the last 10 days. During this time, investors have accumulated about 2.65 million SOL, worth 345 million dollars.
A decrease in exchange balances typically indicates accumulation rather than selling. Owners appear willing to move assets into their control, which reduces selling pressure. This action reflects confidence in Solana's longer-term outlook and supports the building of stability following recent weakness.
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Institutional sentiment towards Solana remains strong amid broader market uncertainty. According to CoinShares' weekly report, SOL saw an investment flow of 48.5 million dollars during the week ending December 20. Total investments for the month are now 117.6 million dollars.
These investments indicate ongoing institutional interest. Professional investors often accumulate assets during consolidation phases. Continued investments can balance out private investor selling and create a foundation for recovery as markets improve.
Solana is trading near 124 dollars at the time of writing and is just below the resistance level of 126 dollars. Chain innovations, exchange flows, and institutional investments may support a recovery attempt at the end of December or the beginning of January.
Breaking above 126 dollars would provide the first confirmation. Once 130 dollars is reclaimed, the sentiment will strengthen further. The main upward target is near 136 dollars. Exceeding this level would signal progress towards recovering losses experienced earlier this month.
Risk levels will remain if sales continue or the entire market weakens. If Solana's price drops below 123 dollars, the support level of 118 dollars will be exposed. Losing this level would negate the bullish scenario and delay the recovery that both ecosystem and institutional catalysts are based on.
