Key Highlights
- SOL retreated from $125 resistance and currently hovers around the $118 support level.
- Breaking below the ascending trendline converted the $120-$121 area into a resistance barrier.
- Technical analyst Sweep anticipates a brief correction before a potential rally to $150.
- The network’s stablecoin supply reached an all-time high of $17 billion, surging 5% within seven days.
- ETF products accumulated 2.32 million SOL tokens in two weeks, representing approximately $278 million in value.
Solana (SOL) has experienced a pullback following its inability to sustain momentum above the $125 threshold. The cryptocurrency currently hovers around $118, where a critical support area is being challenged.
Market participants now face a pivotal moment. Defending this support could stabilize the asset, while failure might trigger a more significant decline toward the $100-$105 range.
Technical analyst Jesse Peralta examined the price movement using two-hour timeframes. His analysis revealed that SOL breached its ascending support trendline around $120-$121, effectively converting this zone into overhead resistance.
This trendline had previously provided consistent support during SOL’s ascent from approximately $96. Its breach suggests deteriorating near-term bullish momentum.
The $115-$118 range represents the immediate support cushion. Successfully holding this level could enable SOL to establish a fresh foundation for subsequent upward attempts.
Technical Outlook Points to Brief Correction Before $150 Target
Solana is approaching a significant high-volume node spanning $120 to $200. This area has witnessed substantial historical trading activity, creating formidable resistance that could prove challenging to overcome.
According to analyst Sweep, a temporary retracement is likely during the early week. His projection suggests a potential decline toward $100-$105 before SOL mounts another attempt at reaching $150.
Sweep highlighted a notable surge in SOL long positions on Bitfinex, which climbed significantly to approximately 84,398. This uptick suggests traders are positioning themselves for an anticipated bounce.
While the data doesn’t distinguish between retail investors and institutional players, it clearly demonstrates increased market participation betting on upward price action.
Record Stablecoin Reserves and Robust ETF Accumulation
The stablecoin supply on Solana’s network has surpassed $17 billion, establishing a new record. This represents a weekly increase exceeding 5%, translating to more than $800 million in additional liquidity flowing into the ecosystem.
Meanwhile, global money supply climbed to an unprecedented $103.66 trillion in August. Major central banks including the Federal Reserve, European Central Bank, Bank of Japan, and People’s Bank of China collectively injected approximately $1 trillion during that period.
Solana-focused ETF products acquired 2.32 million SOL tokens valued near $278 million over a fourteen-day period. Aggregate ETF holdings have now reached $2.283 billion.
Additionally, Solana dominates the altcoin spot ETF landscape. Information shared by Jesse Peralta indicates SOL commands 46% of trading volume, significantly outpacing Zcash at 27%, XRP at 12%, and Hyperliquid at 11%.
Market commentator Gordon Gekko reflected on accumulation strategies. He noted that the initial strategy involved acquiring SOL below $80, and now the focus has shifted to building positions under $120, describing the upcoming phase as “the real move.”
A significant whale transaction also put SOL’s stability to the test. Whale Alert detected a transfer of 500,000 SOL tokens to Binance on September 26, representing approximately $60.5 million at an average price of $121.
Despite this substantial deposit, SOL demonstrated resilience. The token declined merely 0.3% that day and actually gained 0.4% during the subsequent trading session.
Critical levels for traders include $115-$118 as support and $120-$125 as resistance zones. A breakdown below $100 would potentially expose the $90-$80 range.
According to current market data, SOL is trading at $118.17, representing a 2.99% decline over the last 24-hour period.
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