- ETF buzz lifts SOL as short sellers exit fast
- RSI divergence hints at bullish breakout soon
- Solana TVL jumps 70 percent since November
Solana is gaining attention as price momentum builds following ETF speculation, rising whale activity, and improved market sentiment. Despite recent volatility, technical indicators and market developments point toward a growing narrative for further upside in the coming sessions.
Solana Price Recovers Amid ETF Momentum and Short Liquidations
The SOL token maintains its trading price at $122.46 with a 7% increase in the past 24 hours. This rise follows renewed speculation about a Solana ETF after Paul Atkins, a former SEC commissioner with a favorable crypto stance, took over as SEC Chair.
The potential for regulatory approval has grown, with Polymarket data showing a 76% chance of ETF approval by 2025.Asset managers including Grayscale, VanEck, 21Shares, and Fidelity have filed ETF applications. These developments may drive institutional interest and increase trading volumes.
CME also recently launched Solana futures, further signaling institutional demand. Alongside this, whale movements have increased, with short liquidations totaling $9.3 million in the last 24 hours, pushing prices higher.
Technical Indicators Show Building Strength Despite Market Uncertainty
SOL formed a descending channel pattern on the daily chart but has rebounded strongly from its key support zone around $110. The RSI is near 47, indicating neutral conditions with room for upward movement before overbought levels. This follows a bullish RSI divergence, suggesting a reversal in trend could be underway.
The 50-day SMA near $130 is the immediate resistance level to watch, while support sits between $115 and $118. The Total Value Locked (TVL) on Solana reached 57 million SOL, rising 70% since November, according to DefiLlama. Solana also accounts for 24% of decentralized exchange market share, surpassing major networks like BNB Chain.
If bullish momentum continues, Solana could attempt to break resistance levels near $147 and $160. While price targets remain speculative, long-term sentiment continues to align with the outlook that, in hindsight, the move toward $1,000 may seem obvious.
