Solana News Today: Bullish Divergence and ETF Inflows Position Solana for Critical $131 Test

Solana (SOL) is showing early signs of a potential reversal as the cryptocurrency holds key support near $131, sparking optimism among traders and analysts. The price action has formed a bullish divergence on the daily chart, with the Relative Strength Index (RSI) creating higher lows despite a recent price decline to new 24-hour lows. This divergence suggests weakening bearish momentum and hints at a possible shift in market sentiment.

The $131 level has historically acted as a critical support zone, with Solana bouncing off it multiple times in recent sessions. Analysts note that prolonged consolidation above this level often signals accumulation by buyers, who absorb selling pressure before attempting a directional move. If the support holds, the next target for Solana could be the $167 resistance level, a key psychological and technical barrier that aligns with historical price action according to market analysis.

The market's optimism is further fueled by on-chain developments. Wormhole Labs' new Sunrise DeFi platform, launching on Solana, is set to debut Monad's MON token, adding fresh liquidity and use cases for the ecosystem. Meanwhile, the Solana blockchain has become a hub for decentralized token listings, with projects increasingly choosing on-chain launches over traditional centralized exchanges. This shift reflects broader demand for transparency and lower fees in decentralized finance (DeFi) according to market reports.

Institutional interest in Solana has also surged, with a wave of new exchange-traded funds (ETFs) entering the market. VanEck, Fidelity, and Canary Capital launched Solana ETFs this week, joining existing offerings from Grayscale and Bitwise. These funds have attracted over $380 million in combined inflows despite a 20% weekly decline in SOL's price. VanEck's VSOL ETF, for instance, offers a temporary fee waiver until February 2026 or $1 billion in assets under management, while Fidelity's FSOL charges a competitive 0.25% management fee according to financial reports. The SEC's recent rule changes have accelerated approvals for crypto ETFs, removing the need for individual fund assessments.

Technical indicators and market data suggest growing confidence among traders. CoinGlass reports a 0.61% increase in open interest for Solana futures to $7.43 billion in the past 24 hours, signaling a return of buying sentiment. Additionally, Solana's trading volume rose 60% in the last 24 hours, with the token currently trading at $134.35 after a brief dip to $129.02 according to market data. Analysts like Hardy, a prominent crypto observer, highlight that Solana is approaching a crucial support region at $131–$132, with a potential target of $247 if the bullish divergence confirms.

While the near-term outlook appears positive, risks remain. A breakdown below $131 could extend the correction to $124.53, the monthly support level, before buyers regain control. Conversely, a sustained move above $167 would validate the bullish case and open the door to higher resistance levels at $187.68 and $228.99.

With institutional adoption accelerating and on-chain activity surging, Solana's price trajectory will likely hinge on its ability to defend key support levels. For now, the confluence of technical, fundamental, and market-driven factors points to a potential short-term reversal, positioning the altcoin for a test of higher resistance.