Solana (SOL) is trading around $75 on Tuesday after posting three consecutive green candles since the weekend, signaling a strong recovery phase following recent weakness.
The rebound is being supported by renewed institutional interest, with spot Solana exchange-traded funds (ETFs) recording net inflows of $2.8 million on Monday.
On the technical side, easing bearish momentum indicators suggest SOL may have room to extend its short-term rebound.
ETF inflows signal early institutional rebound
Institutional demand for Solana began the week on a positive note.
According to CoinGlass data, spot Solana ETFs recorded $2.8 million in net inflows on Monday, reversing the previous week’s $2.6 million in outflows.
The shift marks an early sign that institutional appetite may be returning.
If inflows continue to build through the week, analysts suggest SOL could see additional upside momentum in the near term.
Broader market data presents a more nuanced picture. CryptoQuant’s aggregated metrics indicate that Solana’s spot and futures markets are showing signs of whale accumulation alongside cooling volatility.
This suggests improving conditions for a potential recovery. The derivatives data also show signs of improving momentum.
The long-to-short ratio for SOL stood at 1.02 on Tuesday, indicating slightly more traders are betting on upside movement than downside.
However, funding rates remain negative at -0.001%, suggesting short sellers are still paying longs and reflecting persistent bearish sentiment in derivatives markets.
Solana technical outlook: Recovery faces strong overhead resistance
The SOL/USD 4-hour is bullish as Solana is currently trading at $74.89 after gaining more than 5% in the last 24 hours.
Despite the rebound, the broader structure remains tilted bearish as price continues to trade below major moving averages.
While the broader trend remains constrained, momentum signals are beginning to stabilize.
The Relative Strength Index (RSI) is hovering near 72, approaching the overbought region.
Meanwhile, Moving Average Convergence Divergence (MACD) has turned positive, suggesting the recent bounce may have some short-term continuation potential.
However, analysts note that this still represents a corrective move within a broader downtrend structure rather than a confirmed reversal.
If the market recovery continues, immediate resistance would be encountered at $77.57, followed closely by the 50-day EMA at $78.13.
A decisive breakout above this zone would be required to ease near-term bearish pressure and open the path toward $85.11 and higher resistance levels.
Beyond that, stronger supply zones are seen near $97.89 and the 200-day EMA at $101.67, which could serve as the medium-term targets.
However, if the bears regain control, key support remains at $60.13.
A break below this level would likely invalidate the ongoing recovery attempt and expose further downside risk.
Overall, Solana’s short-term outlook is cautiously improving, but sustained upside will depend on continued ETF inflows and a decisive break above major resistance levels.
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