Key Takeaways
- •SOL is testing a major support zone after a sharp price drop.
- •ETFs recorded strong net inflows despite the correction.
- •Solana still leads all chains in DEX and app activity.
After dropping more than 10% in the last 24 hours to roughly $123, SOL is hovering near a key support level where buyers previously defended the trend. Technical signals now point to a critical make-or-break zone that could dictate the next major move.
On the daily chart, Solana is showing clear oversold conditions. The RSI has slipped to 32, its lowest reading in weeks, placing the asset just above traditional oversold territory. MACD momentum also reflects persistent bearish pressure. However, price appears to be landing right on the lower boundary of a long-term rising structure — and that’s where the bullish argument begins.
Solana Reaches the Bottom of a Multi-Year Ascending Channel
Market analyst Trader Tardigrade highlighted that Solana has remained inside an ascending channel for over 1,200 days, dating back to May 2022. According to his model, the token has now returned to the lowest sub-channel level – the same region where past rebounds have launched prolonged rallies.
In his outlook, any shift toward upward momentum could set up a powerful move back toward the upper channel range, with the highest sub-level potentially positioning Solana above $1,500 if the trend holds.
$SOL/weekly #Solana has been in this Ascending Channel for over 1,200 days since May 2022. It is currently in the lowest sub-channel zone. An upward momentum trigger could push it above $1,500 at the highest sub-channel zone. pic.twitter.com/VvnNJyvErk
— Trader Tardigrade (@TATrader_Alan) December 1, 2025
Institutions Continue Accumulating SOL Despite Pullback
The current price drop isn’t discouraging large buyers. Data shows positive ETF inflows into Solana products are accelerating: +83,144 SOL over the past 24 hours, worth more than $10.5 million, and +773,311 SOL in the last seven days, representing nearly $98 million in net additions. The steady accumulation suggests the market’s largest players continue positioning for long-term exposure rather than pricing in a reversal.
Solana Dominates DEX and App Activity
While the token price corrects, Solana’s on-chain economy is showing leadership not seen elsewhere. In the last 24 hours, Solana ranked as the number-one blockchain in decentralized-exchange trading volume at nearly $3 billion – outperforming Binance Smart Chain, Ethereum, Base, Polygon, Arbitrum, and others. The network also leads across 7-day and 30-day timeframes for both DEX activity and application revenue, underscoring persistent network demand.
Developers and founders note that this level of usage gives Solana-based projects meaningful visibility: when activity across the chain is consistently at the top of dashboards and analytics scanners, newer protocols effectively land at the top of investor and user discovery funnels.
Outlook
Solana is now in the familiar position where strong fundamentals collide with short-term market stress. Technical conditions point to exhaustion on the downside, ETF inflows show institutional confidence, and the network’s activity metrics continue to break sector records. If bulls defend current support and reclaim momentum, the broader ascending trend channel remains valid — and history suggests sharp rebounds have followed this same setup before.