Solana has captured the spotlight in the crypto market, as its buying pressure surged by an impressive 740% due to the recent buzz around ETFs. Although the Solana price is experiencing a slight pullback, the long-term outlook remains bullish, leaving investors wondering if a breakout is on the horizon.
Solana ETF Filing Sparks Optimism
The Solana ecosystem gained new momentum thanks to Morgan Stanley’s filing for a Solana-focused ETF on January 6, 2026. Institutional attention is fueling a positive narrative, boosting confidence in SOL’s price resilience despite recent fluctuations.
On the daily chart, an inverse head-and-shoulders pattern is forming—a bullish indicator suggesting the potential for a significant upward move. The left shoulder was established in late November, the head materialized in mid-December, and the right shoulder is now taking shape. All eyes are on the $143 neckline, as a daily close above this level could trigger an estimated 24% upside.
Key Price Levels to Watch
Support for Solana has held strong at approximately $121, corresponding to the left-shoulder level in the current bullish pattern. While minor pullbacks toward $130 remain possible, these do not disrupt the overall trend. A sustained break above $143, however, would solidify the bullish structure and pave the way for gains toward $178.
Indicators of Strong Buying Pressure
The Chaikin Money Flow (CMF), a key metric tracking capital inflows and outflows, highlights that institutional and retail investors are heavily backing Solana. The CMF has been trending upward since November, consistently remaining above the zero line, signaling strong inflows.
Additionally, the HODL Waves metric reveals that short-term traders have reduced their speculative supply significantly. Between December 24 and January 7, wallets holding Solana for one day to one week reduced their holdings by 35%. Meanwhile, long-term holders have ramped up accumulation, driving a staggering 740% increase in net buying pressure during the same period.
What’s Next for Solana?
With speculative selling subsiding and long-term investors showing increased confidence, Solana appears well-positioned for a potential breakout. Market sentiment remains optimistic, provided that the bullish structure holds steady. A rally above $143 could mark the beginning of a significant upward trend, offering a lucrative opportunity for stakeholders.
Want to elevate your investment experience? Consider tracking your crypto portfolio effectively with tools like the Ledger Nano X. This secure, user-friendly hardware wallet ensures your digital assets are stored safely, giving you unmatched peace of mind while participating in the ever-volatile crypto market.
Conclusion
As Solana continues to attract attention from both institutional and retail investors, its ability to sustain current price levels will be critical. The ETF buzz has created an exciting opportunity, and with increasing buying pressure complementing strong technical indicators, Solana holds promise for those monitoring its upward trajectory.
Stay informed and ensure your investments are safe by leveraging trusted tools and staying connected with the latest crypto market developments.
