Solana News Today: Institutional Confidence vs. Market Bears: Solana's $125 Battle for Rebound

Solana (SOL) has slipped below $125 amid heightened selling pressure and a broader cryptocurrency market selloff, with Bitcoin dropping below $87,000 and triggering over $600 million in 24-hour liquidations. Despite the short-term decline, analysts argue that key fundamentals-including institutional demand, on-chain activity, and technical indicators-suggest a potential rebound. The token, which trades at $123 as of press time, has seen mixed volume metrics, with spot trading down 12.3% and futures volume declining 1.17%. However, cumulative inflows into Solana spot ETFs have reached $621 million over 21 consecutive days, the longest inflow streak for any major crypto ETF in 2025.

The ETF momentum has been driven by major players such as Bitwise, Grayscale, and Fidelity, which collectively added $53 million in net inflows on Nov. 25 alone. This trend has been bolstered by Franklin Templeton's recent SEC filing for a Solana ETF, signaling further institutional interest. Meanwhile, derivatives data shows bears dominate the market, with open interest in SOL futures falling 6.17% to $7 billion and the OI-weighted funding rate turning negative. Yet, Solana's on-chain activity remains robust, with the network leading in decentralized exchange (DEX) trading volume and app revenue over the past 30 days.

Technical analysis highlights a critical juncture for Solana. The token is currently at the lower boundary of a 1,200-day ascending channel formed since May 2022, a level historically associated with rebounds. Market analyst Trader Tardigrade noted that Solana's price has returned to the lowest sub-channel zone, where past rallies have launched prolonged upward moves.

If buyers defend this support, the asset could retest the upper channel range, potentially pushing toward $1,500. However, recent price action shows bearish dominance, with a 5% intraday drop and the RSI hovering near oversold territory at 32.

The narrative around Solana has also been shaped by its ecosystem's ambitions. The Solana team recently likened the network to "the Amazon of finance," emphasizing its focus on speed, low cost, and customer experience to drive adoption. While this sparked debate with industry figures like Helius CEO Mert Mumtaz, the analogy underscores Solana's strategic positioning in the crypto landscape. Critics, however, argue that technical indicators remain weak, with the RSI and MACD failing to cross bullish thresholds despite a 15% rebound from November lows.

Analysts caution that the current price correction could extend if Solana fails to reclaim the $140–$150 resistance zone. A decisive close below $126 may test support at $112 or $95. Conversely, sustained ETF inflows and strong on-chain metrics suggest institutional confidence. Over the past seven days, large holders have added 773,311 SOL, valued at nearly $98 million, indicating continued long-term positioning.