Solana broke out of the price range that was fluctuating last week after failing to maintain upward momentum, resulting in a delayed recovery back to 150 USD. After that, SOL moved cautiously while waiting for stronger confirmation signals.
Nevertheless, recent activities on the network and movements of institutional investors show each investor that they are preparing for a price rebound, which may create a stronger direction again in late this year or early January next year.
Solana holders are locked by ETFs.
The Solana ecosystem has begun to roll out new incentives through on-chain Creator ETFs, also known as Bands, launched by Bands.fun. However, these products differ from traditional securities in the stock market because they operate directly on the Solana blockchain in the form of portfolio programs managed by creators, analysts, or influencers.
Creator ETFs can combine tokens or NFTs together and automatically adjust the portfolio according to predefined rules. If they gain more popularity, they will further increase network activity and transaction volumes. Higher network usage often supports price recovery by expanding the demand for SOL as an asset for benefits within this ecosystem.
Institutions see potential.
Additionally, the balance data on the exchange platform has sent further positive signals, as the balance of Solana on centralized exchange platforms has significantly decreased over the past 10 days. During this period, investors have accumulated approximately $2.65 million SOL, worth $345 million USD.
The decrease in coin balances on exchange platforms mostly indicates accumulation, not widespread selling, as holders seem willing to transfer assets to their personal wallets, which will reduce immediate selling pressure. This behavior indicates confidence in the long-term outlook of Solana and also supports recovery after the previous weakness.
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While there is still uncertainty in the overall market, the attitude of institutional investors towards Solana remains strong. CoinShares' weekly report states that SOL has received a net inflow of $48.5 million USD for the week ending December 20, with total inflows since the beginning of the month amounting to $117.6 million USD.
These allocations reflect ongoing interest from institutions, as some professional investors tend to accumulate assets during quiet markets. If inflows continue, it will help offset selling pressure from retail investors and serve as a crucial foundation for recovery when the overall market improves.
Solana is trading at nearly $124 USD at the time of writing, which is below the resistance level of $126 USD. The combination of innovation on the blockchain, outflows from trading markets, and inflows by institutions may support a recovery by late December or early January.
If it breaks above $126 USD, it will be an initial confirmation signal, but reclaiming $130 USD will help bolster confidence. Additionally, a key positive target is around $136 USD; if this level is surpassed, it will indicate progress in recovering losses incurred earlier this month.
However, downside risks still exist if selling pressure returns or if the broader market weakens. If Solana's price drops below $123 USD, it may open the opportunity for the support level of $118 USD to be tested again, and if this level is lost, it will undermine the overall positive outlook, delaying recovery supported by the ecosystem or institutional investments.
