Solana's price chart is displaying early technical signals that suggest potential buyer interest despite recent declines, according to market analysis. The cryptocurrency made a lower low between mid-November and early December while its Relative Strength Index (RSI) formed a higher low, creating a bullish divergence pattern. The RSI measures momentum and identifies potentially oversold or overbought conditions in an asset.
The Chaikin Money Flow (CMF) indicator has also risen recently and is approaching its trendline, according to the analysis. The CMF tracks money flow to indicate whether institutional buyers are accumulating positions. A break above the trendline would signal increased buying pressure, the report stated.
A technical analyst noted on social media that Solana’s price is currently touching a weekly support trendline that has generated rebounds since 2023, suggesting the level has historical significance for the asset.
Solana Shows Bullish RSI and ETF Support
Solana (SOL) spot exchange-traded fund inflows have remained positive for several weeks, with only a minor decline recorded in early December, according to available data. Cumulative ETF inflows have been substantial, indicating continued institutional interest despite price weakness.
Market observers have identified ETF demand as a factor supporting Solana’s price above recent support levels. Spot ETFs can absorb circulating supply, potentially reducing downward price pressure.
Network activity has increased with recent developments including Kalshi prediction markets tokenizing on Solana and growing interest in meme token projects such as Pippin, which typically correlate with retail participation.
Technical analysts state that Solana must close above a key resistance level that has capped rallies since late November to confirm a reversal pattern. The last close above that resistance occurred earlier in the month, according to chart data.
A breakout above the resistance could open a path toward higher price zones that previously acted as rejection points, analysts said. Conversely, a close below nearby support would invalidate the bullish RSI and CMF setup and threaten the long-term weekly trendline.
Solana’s price currently trades between strong ETF inflows and broader market weakness. The technical reversal setup requires confirmation through a break above key resistance before a recovery scenario becomes viable, according to the analysis.