- Solana is showing signs of recovery above $150 amid growing ETF approval buzz and major institutional staking by Galaxy Digital.
- However, declining derivatives interest and rising long liquidations suggest caution, with a key resistance level at $167 determining the next breakout or breakdown.
Solana ETF Hype Grows, But Bulls Stay Quiet
Solana (SOL) kicked off Tuesday with a modest bounce above $150, recovering over 1% after a sluggish start to the week. The price uptick comes amid growing excitement around Solana Exchange Traded Funds (ETFs). CoinShares has become the eighth issuer to file an S-1 application with the U.S. SEC, joining major players like Grayscale, Fidelity, and VanEck. Bloomberg ETF analysts Eric Balchunas and James Seyffart even pegged Solana’s ETF approval odds at 90%.
Despite this optimism, Solana’s derivatives market paints a more subdued picture. Open Interest (OI) in SOL contracts dropped over 7% in just 24 hours, while long liquidations surged to $15 million—far outpacing the $4 million in short positions. The data signals a market still rattled by Monday’s pullback.
Galaxy Digital Bets Big on Solana
Institutional interest, however, continues to strengthen. Galaxy Digital staked $63 million worth of SOL in just one day, increasing its total staked SOL to 660,000—valued at over $100 million. This aggressive move is part of a broader trend of institutions bolstering Solana treasuries, including firms like Solana Strategies and DeFi Development Corp.
Galaxy’s move adds credibility to the bullish long-term outlook for SOL, but near-term traders remain cautious.
SOL Price Eyes Breakout, But Resistance Looms
Technically, Solana is trying to reverse from its $140 support level. The next big test lies at the multi-month resistance trendline around $167—coinciding with the 50% Fibonacci retracement from its all-time high of $295.
Indicators like the MACD are close to flashing a bullish crossover, and the RSI is climbing toward 50, hinting at growing momentum. A successful close above $167 could open doors to $191, near the 61.8% Fibonacci level.
Will the Bulls Return?
Despite strong ETF momentum and institutional staking, Solana’s bullish energy remains muted. A breakout above $167 could flip the script, but failure to hold $140 might send SOL tumbling toward the $100 psychological level. For now, investors should watch closely as technical and sentiment indicators collide in a high-stakes battle.
