Solana (SOL) approaches the key resistance zone, does the support from the ETF have enough strength to trigger a breakout?

The price of Solana (SOL) is experiencing slight profit-taking pressure as it approaches the upper boundary of the accumulation zone around the $88 mark during Wednesday’s trading session. However, support from institutional funds is becoming increasingly evident as spot ETF funds record two consecutive inflow sessions since the beginning of the week, strengthening the foundation for a recovery trend.

On the technical side, if SOL can convincingly close above the current accumulation zone, a breakout scenario will open up, paving the way for a short-term upward rally.

Increasing Institutional Demand

Institutional demand for Solana continues to maintain a positive outlook this week. According to data from SoSoValue, SOL spot ETF funds recorded an inflow of $1.03 million on Tuesday, after attracting $17.41 million in the previous session, bringing the total accumulated capital from the start of the week to $18.44 million.

Daily net capital flow chart into Solana spot ETF | Source: SoSoValue Notably, the capital inflow trend is not only short-term. Last week, these funds recorded $44.44 million — the highest since mid-January — indicating growing interest from institutional investors. If the inflow momentum continues to strengthen, SOL could enter a new upward phase in the coming weeks.

Weekly net capital flow chart into Solana spot ETF | Source: SoSoValue In the derivatives market, data from CoinGlass also signals optimism. The funding rate index turned positive on Wednesday, reaching 0.0008%, meaning long traders are paying fees to short traders. This development reflects positive investor sentiment regarding SOL’s short-term prospects.

Solana funding rate chart | Source: Coinglass## Solana Price Forecast: SOL Approaching a Key Resistance Zone

At the time of writing on Wednesday, Solana (SOL) has slightly retreated to around $85.41, indicating a state of consolidation but still leaning bearish in the short term. The price remains below the upper boundary of the parallel channel around $87.96 and faces downward pressure from the long-term descending trendline from the $253.51 high — a sign that the bears still hold the control.

Daily candles continue to close below the 50-day and 100-day EMAs, which are now converging above the $98 level. This keeps the overall picture under pressure, despite a technical rebound from the lower boundary of the channel around $77.60.

Daily chart of SOL/USDT | Source: TradingView In terms of momentum, the signals have become less negative. The daily RSI has recovered to the mid-40s after leaving oversold territory, while the MACD lines remain above zero, indicating a slowdown in the downward momentum. However, the main trend has not yet reversed.

The nearest resistance is at the 23.6% Fibonacci level at $86.60 (measured from the $67.50 low to the $148.44 high). If broken, SOL could target the 38.2% level at $98.42 — coinciding with the 50-day EMA, which is considered a notable supply zone.

Conversely, immediate support remains at the channel bottom around $77.60, followed by the previous low of $67.50 — also an important Fibonacci anchor point. Whether buying pressure will be strong enough here to halt the current downtrend or if the market will enter a new accumulation phase depends on the strength of demand at these levels.