Solana Price Seeks Recovery Amid ETF Inflows, but $170 Resistance Looms

Solana's price is trying to bounce back after falling below a long-term upward trend. Here are the essential levels to monitor.

Key Takeaways

Solana has recently experienced a significant decline after breaking below its ascending channel.
The price is currently attempting to recover and reclaim critical levels around $190 and $170.
Resistance exists around the $166–$169 range, which could determine the success of this rebound.
Ongoing institutional interest from ETF inflows and potential market shifts may support Solana's recovery.

solana price

Technical Analysis of Solana's Price

Solana Solana sol-3.02% has recently faced a significant downturn, breaking away from a long-term ascending channel that has been in place since April. The sell-off on November 3 pushed the price down, finding temporary support around the $146 mark, which led to a short-term rebound.

Currently, Solana is trying to recover and reclaim the broken lower trendline of its channel. It faces crucial resistance around the $190 level, which coincides with the 0.618 Fibonacci retracement from the recent decline as well as the 55-day EMA (green). This adds further significance to the $190 resistance.

However, just before reaching that level, Solana's price encounters a formidable challenge in the $166–$169 range. Here, immediate resistance emerges due to an SR flip, as it was previously a support level during consolidation in late October. This area aligns with the 21-day EMA (yellow) and the 0.786 Fibonacci retracement, forming a strong confluence zone that could be pivotal in determining the power of the current rebound.

Solana price attempts comeback amid ongoing ETF inflows, but $170 resistance may stall recovery - 1 Solana price 1D chart | TradingView

Is a Recovery Possible for Solana’s Price?

Despite the recent downturn, multiple bullish factors could assist Solana's price in stabilizing. Continuous ETF inflows for SOL over the past 10 days suggest consistent institutional interest, even with weakness in the broader market.

Additionally, the anticipated resolution of the U.S. government shutdown has positively impacted overall risk appetite, which may provide a boost for altcoins. If Bitcoin (BTC) and Ethereum (ETH) regain their momentum, Solana has a good opportunity to reclaim its upward channel.