Solana News Today: Solana (SOL) Tests $175 Support as DeFi Growth and ETF Hopes Fuel Rebound Potential

Solana’s (SOL) price has declined 15.5% from its six-month high of $209.80, sparking concerns about a bearish reversal. However, technical and fundamental metrics indicate this pullback may be temporary. The token is now hovering near the $175–$178 range, a key support zone dubbed the “golden pocket” by analysts [1]. This level aligns with the 0.618 Fibonacci retracement and has historically acted as a decisive support in trending markets. A successful defense of this area could trigger a rebound toward the $200–$210 level.

Fundamentally, Solana continues to gain traction within the DeFi space, with $12.1 billion in Total Value Locked (TVL), a 20% rise over two months [1]. It now outpaces BNB Chain in TVL and has individual decentralized applications such as Kamino and Jito surpassing $2 billion in TVL. Transaction demand is supported by staking activity, as fees are essential to maintain native staking yields.

Network fee generation has grown significantly, with Solana earning $35.6 million in fees over the past 30 days, a 22% increase month-over-month [1]. Despite Ethereum’s larger smart contract deposit base, Solana ranks third in fee generation, trailing only Ethereum and Bitcoin. This is attributed to Solana’s robust validator requirements, which demand higher hardware capacity and capital commitment, contributing to its long-term resilience.

Institutional interest in Solana is also on the rise, with open interest in SOL futures reaching $10.7 billion [1]. This figure has grown from $6.9 billion in the past two months and now exceeds that of XRP futures, despite XRP’s significantly larger market cap. Additionally, $2.8 billion is currently invested in Solana exchange-traded futures and products, signaling growing institutional demand.

The launch of Solana spot ETFs in the U.S. is another potential catalyst. Analysts at Bloomberg forecast a 90% or greater likelihood of approval by the end of the year [1]. Such regulatory progress could further drive price appreciation and increase on-chain activity.

Technically, SOL has tested the $185–$188 zone, a critical resistance area aligned with a descending trendline that has constrained the price during the recent pullback [1]. A break above this level could shift momentum to buyers. Additionally, the Relative Strength Index (RSI) has entered oversold territory, with readings in the mid-30s, suggesting that selling pressure may be exhausting and a rebound could be imminent.

If buyers defend the $175–$178 support zone and break above the $185–$188 resistance, Solana could target the $200–$210 range in the near term [1]. The key to this scenario is maintaining the higher-low pattern above the $170 level. A successful rebound would reinforce Solana’s position as a leading blockchain for DeFi and institutional adoption.

Solana’s price correction appears to be a healthy market reset rather than a structural breakdown [1]. With reduced leverage and stronger institutional demand, the ecosystem is positioned to resume upward momentum if the key support levels hold.

Source:

[1] title: Solana (SOL) Price: Technical Support at $175 Could Trigger Rebound to $200 Level

url: https://blockonomi.com/solana-sol-price-technical-support-at-175-could-trigger-rebound-to-200-level/