Solana fell out of last week's consolidation after failing to maintain upward momentum, thus delaying a rise towards $150. Since then, SOL has been traded cautiously, awaiting a stronger confirmation.
Recent on-chain activity and institutional activity suggest that investors are positioning themselves for an upswing, which could potentially facilitate increased price strength towards the end of the year or early January.
Solana owners have the ETF band
Solana's ecosystem introduces a new catalyst through on-chain 'Creator ETFs,' also known as Bands, launched via Bands.fun. These products differ from traditional exchange-traded products. They operate directly on the Solana blockchain as programmable portfolios curated by creators, analysts, or influencers.
Creator ETFs can collect tokens or NFTs and automatically rebalance based on predefined rules. Increased adoption can lift on-chain activity and transaction volume. Higher network usage often supports a price increase by strengthening the demand for SOL as a utility asset.
Institutions see potential
Balance data from exchanges provides another positive signal. Solana holdings on centralized exchanges have fallen sharply over the last 10 days. During this period, investors have accumulated approximately 2.65 million SOL, worth $ 345 million.
Shrinking exchange balances typically indicate accumulation rather than distribution. Holders appear willing to move assets to their own custody, reducing immediate selling pressure. This behavior suggests confidence in Solana's long-term prospects and supports the argument for stabilization after the recent weakness.
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Institutional sentiment around Solana remains strong despite uncertainty in the broader market. CoinShares' weekly report shows that SOL received $ 48.5 million in inflow for the week ending December 20. Cumulative inflow for the month is now $ 117.6 million.
These allocations indicate persistent institutional interest. Professional investors often accumulate during consolidation phases. Continued inflow can help offset private sales and provide a basis for an increase if market conditions improve.
Solana is trading near $ 124 at the time of writing, and is below the resistance at $ 126. The combination of on-chain innovation, exchange withdrawals, and institutional inflows may support an attempt to rise towards the end of December or early January.
A break above $ 126 will be the first confirmation. If $ 130 is reclaimed, the sentiment is further reinforced. The key upside target is near $ 136. Breaking this level will signal progress towards recovering losses from earlier this month.
Downside risks persist if sales resume or broader markets weaken. Solana price below $ 123 may delay the support level at $ 118. Losing this level would invalidate the bullish case and delay any rise driven by ecosystem or institutional catalysts.
