Solana Network Grows as SOL Price Stalls Below Key Resistance

Solana (SOL) price rose above $137 as of January 9, with institutional demand for the asset intensifying. SoSoValue data shows that spot Solana ETFs recorded $41.08 million in net weekly inflows through Thursday, the highest since mid-December. This follows a $16.24 million inflow on Monday, marking the largest single-day inflow since mid-December. Total net assets surpassed $1 billion so far this week, reinforcing bullish sentiment.

The network also saw a surge in stablecoin activity. DefiLlama data shows that Solana's stablecoin total supply has recovered to $15.32 billion since early January. This increase in stablecoin usage suggests higher network activity and potential for increased adoption.

Circle's recent activity on the Solana network also highlights institutional confidence. According to Onchain Lens, Circle minted another $1 billion USDC on Solana within a 24-hour period, bringing the 2026 year-to-date total to $1.75 billion. This liquidity injection could enhance DeFi activity on Solana, increasing trading volumes in pairs like SOL/USDC.

Why Did This Happen?

Institutional demand for Solana has been growing steadily since October 28, with spot ETFs showing consistent inflows. The $16.24 million inflow on Monday marked the largest single-day inflow since mid-December. This indicates strong investor interest, especially from institutional players seeking exposure to the rapidly growing Solana ecosystem.

CryptoQuant's on-chain data also suggests a bullish bias. Spot and futures markets show large whale orders, cooling conditions, and buy-side dominance. These factors indicate improving trader sentiment and could signal further gains for SOL in the near term.

How Did Markets React?

Solana's price action has shown resilience. After retesting key support levels, the asset rebounded, closing above $136.75 for the week. The RSI on the daily chart reads 61, above the neutral level of 50, signaling bullish momentum. If SOL continues its upward trend, it could move toward the next resistance level at $160.61, its 100-day EMA.

However, Sol Strategies Inc. reported a challenging Q4 2025, with an earnings per share (EPS) of -1.15 and a comprehensive loss of $20.2 million. This resulted in a 9.47% decline in its stock price during the open market phase. Despite the earnings miss, the company emphasized its strategic pivot to the Solana blockchain and growing validator stake.

What Are Analysts Watching Next?

Analysts are closely monitoring institutional adoption of Solana, particularly through ETFs and stablecoin minting. Morgan Stanley's recent filing for spot Bitcoin and Solana ETFs underscores growing Wall Street interest. If approved, these ETFs could enhance liquidity and legitimacy for Solana, potentially leading to broader institutional adoption.

The Wyoming Stable Token Commission's Frontier Stable Token (FRNT) also launched on the Solana network, highlighting further institutional confidence in its infrastructure. This development, combined with increased on-chain activity and stablecoin adoption, could drive further growth in the ecosystem.

While bullish indicators abound, some caution is warranted. Solana's price has stalled below key resistance levels, and the RSI remains in overbought territory. If the price fails to break through $160.61, it could face corrective pressure toward the 50-day EMA at $136.75. Traders are advised to monitor on-chain metrics and institutional flows to gauge the sustainability of the rally.

Analysts are also watching the broader crypto market for signs of continued institutional participation. SoSoValue data shows that US Bitcoin and Ethereum ETFs have attracted over $1.5 billion in investments since January. This trend could support further inflows into altcoins like Solana, especially if Ethereum ETFs continue to gain traction.

PumpSwap, the trading arm of the Pump ecosystem, also saw a surge in volume, reaching $1.28 billion in 24 hours. This indicates renewed retail and institutional interest in Solana's memecoin market, which could drive broader network activity and liquidity.