Solana has failed to maintain its upward momentum after breaking out of last week's bottoming range, delaying a recovery to $150. Since then, SOL has been trading cautiously while waiting for stronger signals.
Recent on-chain and institutional investor movements indicate that investors are positioning themselves in anticipation of a rebound. This may provide a foundation for a price rally to emerge again by the end of the year or early January next year.
Solana holders are tied to the ETF.
The Solana ecosystem is introducing a new catalyst known as the on-chain 'Creator ETF (Bands)'. This product, launched through Bands.fun, differs from traditional exchange-traded products (ETPs) and operates programmatically on the Solana blockchain with portfolios selected directly by creators, analysts, and influencers.
The creator ETF can bundle tokens or NFTs (non-fungible tokens) and automatically rebalance according to predetermined rules. As its adoption increases, on-chain activity and trading volume may rise. As network utilization increases, demand for the utility asset SOL may strengthen, supporting price recovery.
Institutions see growth potential.
Exchange balance data is also adding positive signals. Over the past 10 days, Solana balances on centralized exchanges have significantly decreased. During this period, investors have purchased an additional 2.65 million SOL, which corresponds to $345 million.
A decrease in exchange balances generally indicates accumulation rather than distribution. Holders are moving assets to store them directly, reducing short-term selling pressure. This behavior demonstrates confidence in Solana's long-term bullish outlook, and it positively impacts price stability following recent weakness.
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Despite overall market uncertainty, the sentiment of institutional investors towards Solana remains strong. According to the weekly report from UK crypto asset manager CoinShares, Solana saw an inflow of $48.5 million during the week ending December 20. The cumulative inflow for this month is $117.6 million.
These fund inflows demonstrate a sustained institutional investment willingness. Professional investors typically take buy positions during correction phases. Ongoing fund inflows can offset selling pressure from retail investors and lay the groundwork for recovery when market conditions improve.
The current Solana price is around $124 and is moving below the resistance level of $126. A combination of on-chain innovations, net outflows from exchanges, and inflows of institutional funds suggests that a rebound attempt may be possible by the end of December or early January next year.
Breaking above $126 will be the first confirmation signal. If it recovers to $130, investor sentiment is expected to strengthen further. The main upward target is $136, and if this range is broken, it could signal a recovery from the losses recorded earlier this month.
There remains a risk of decline if selling pressure resumes or if overall market weakness continues. If the Solana price falls below $123, the support level of $118 could open. A drop below this range could invalidate bullish logic and delay recovery based on ecosystem or institutional inflows.
