Solana (SOL) traded at $116.95 on September 29, recording a daily decline of 1.6% after almost reaching $125 over the prior weekend. The drop marks the second consecutive session of losses for the token, signaling a potential cooling in short-term bullish momentum.
Recent rally and technical outlook
Solana experienced a significant recovery throughout September, rebounding from levels below $100 to surpass $120 within less than two weeks. Despite briefly moving above $120 last week, buyers have so far struggled to establish this threshold as a stable support level.
As the price slides, attention now turns to the $116–$118 zone, with $110 seen as the next critical support should selling pressure intensify. Market analysts have highlighted that this is a much stronger setup compared to earlier in the month, when market participants speculated whether SOL might decline toward $85 before stabilizing.
A decisive move reclaiming $120 would likely improve Solana’s technical outlook, potentially positioning the token to target its recent high near $125 once again.
Institutional demand boosts market confidence
Institutional investment continues to play a pivotal role in supporting SOL’s market structure. Reports indicate that Solana exchange-traded funds (ETFs) attracted $188 million in inflows last week. Bitwise, a leading crypto asset manager, contributed approximately $128 million to that total.
Earlier, the Bitwise Solana (BSOL) fund achieved a significant milestone, surpassing $1 billion in assets under management. This surge in interest has helped reinforce market sentiment, as the recent SOL rally coincided with escalating institutional buying.
| ETF | Weekly Inflows | Total AUM |
|---|---|---|
| Bitwise Solana (BSOL) | $128 million | Above $1 billion |
| Other Solana ETFs | $60 million | Not reported |
If institutional inflows persist and the price remains above the $110 level, institutional demand could offer enough support for the market to attempt another push through the $120 barrier.
Mini dictionary: Bitwise is a US-based crypto asset manager known for creating index funds and ETFs focused on digital assets. BSOL is its flagship Solana-focused investment product, offering institutional investors exposure to SOL through regulated channels.
Institutional participation has accompanied Solana’s latest breakout, with ETF inflows reaching $188 million in a single week. Bitwise alone accounted for $128 million of this total, demonstrating robust appetite among professional investors.
On-chain fundamentals and network adoption
Solana’s overall network position remains constructive according to recent indicators. Stablecoin balances on the blockchain reportedly set a record by hitting $17 billion, while activity involving tokenized assets continues to expand.
These on-chain developments point to a persistent adoption trend, reinforcing the underlying demand that helped drive SOL above the $110 mark in recent sessions.
Stablecoin balances on the Solana network reached a record $17 billion, supporting the broader increase in on-chain activity and lending further confidence to Solana’s ongoing adoption.
