Eugene: The trading plan remains unchanged, firmly holding for the market uptrend

Solana (SOL) continues to show strong performance amid a mixed broader crypto market. On Friday, SOL traded above $139, having rebounded from key support levels after a slight correction. Institutional demand remains robust, with $41 million in weekly inflows to Solana spot ETFs recorded through Thursday. Morgan Stanley has also submitted ETF filings for both Bitcoin and Solana, signaling increased institutional interest.

Technical indicators suggest continued bullish momentum for Solana. The Relative Strength Index (RSI) is at 61, above the neutral 50 level, while the Moving Average Convergence Divergence (MACD) shows a bullish crossover. Solana's price recently crossed the 50-day exponential moving average (EMA) and is now testing the next daily resistance level at $160.

A strategic merger between Cerity Partners and SOL Capital Management has further reinforced the investment community's confidence in the asset class. This partnership expands institutional capabilities in wealth management and reinforces Solana's growing role in the investment landscape.

Why Is Solana Outperforming Major Cryptocurrencies?

Trader Eugene highlighted Solana as the best-performing among the three major cryptocurrencies. He noted that from a technical perspective, SOL is expected to fluctuate toward $160. Eugene emphasized the importance of entering a long position before market consensus builds, currently hoping for Bitcoin to hold the $90,000 mark.

Bitcoin's price movements remain a key factor for Solana's trajectory. Bitcoin currently trades near the $90,000 level, a critical support zone. Analysts suggest that if Bitcoin breaks this level, it could face further downward pressure toward $87,500 or even $86,800. Alternatively, a rebound above $90,000 may allow Bitcoin to retest higher resistance at $94,000–$95,000.

What Are Analysts Watching Next?

Market sentiment and technical indicators suggest a period of consolidation for Bitcoin and Solana. If Bitcoin continues to hold above $90,000, it could signal sustained bullish momentum and potentially trigger a retest of the $100,000 level. Conversely, a breakdown below $90,000 may lead to a deeper correction toward $80,000 or $70,000.

The RSI is showing improvement on a weekly timeframe, suggesting potential for a breakout. Additionally, a short squeeze could occur if Bitcoin moves above $95,000, as nearly $1.5 billion in short positions may be liquidated.

Investors are also monitoring on-chain metrics such as apparent demand and ETF flows. Recent on-chain data shows weak demand for Bitcoin, with apparent demand dropping into negative territory in November. However, fresh stablecoin inflows to exchanges in January have shown weakly positive capital flows.

For Solana, if institutional inflows continue and ETF approvals proceed, the price could see a further rally, particularly if Bitcoin continues its upward trend. Morgan Stanley's ETF filings suggest potential regulatory progress, which could enhance Solana's legitimacy and liquidity.

The broader crypto market is currently in a waiting phase, with traders monitoring key levels. If Bitcoin breaks either the $90,000 support or $95,000 resistance, the move could be rapid and decisive.

What's the Outlook for Solana and Bitcoin in the Near Term?

The key price level for Bitcoin remains at $90,000. If it holds, bulls could see a retest of the $94,000–$95,000 range, with potential for a short-term rally toward $100,000. A breakdown below $90,000 could trigger a deeper correction toward $87,500 or $86,800.

For Solana, the $160 target is in focus. If Bitcoin reaches $100,000, Solana could see a rally toward $200. Technical indicators suggest continued bullish momentum, with the RSI and MACD in favorable positions.

Investors should monitor ETF flows, institutional inflows, and Bitcoin's price action for further clues on the direction of the market. Eugene's trading plan remains unchanged, emphasizing the importance of entering positions before market consensus forms.

Market analysts remain cautious, given recent ETF outflows and mixed sentiment. The Bitcoin Unified Sentiment Index recently shifted from fearful to neutral, suggesting a lack of sustained buying pressure. However, fresh inflows and positive on-chain metrics may provide support for a rebound.