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The price of Solana has registered a decline, but the structure is still bullish. This 2% daily decline comes as a new order was filed for a Solana-focused exchange-traded fund, bringing Solana into the spotlight in a relatively volatile cryptocurrency market. Despite the slight daily decline, Solana is still up more than 8% on the week, outperforming most large-cap currencies.
Change positions in depth in ways that support stability rather than weakness.
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Morgan Stanley’s introduction of an ETF comes as Solana tests a key structure
The recent presentation of Morgan Stanley’s Solana ETF on January 6, 2026 added a new narrative layer to an already active chart list. Although the price did not react strongly, Solana continues to consolidate near a major bullish pattern as institutional interest increases.
On the daily chart, Solana continues to form an inverse structure of the head and shoulders. This pattern often indicates the potential for a manifestation once confirmed.
The left shoulder formed at the end of November, the head appeared in mid-December, while the right shoulder is now formed as the price retreats from recent highs.
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Even if Solana declines an additional 8% to 10%, the price remains in the area of the left shoulder. Now, the $121 level looks like a good support zone for a rebound, as the left shoulder has formed at this level.
A clear break above the rock will open a calculated upside of 24% from the price explosion level. Therefore, the bullish structure remains.
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Capital flow remains positive as speculative supply exits
Capital flow data supports the idea that this decline is under control. The Chaiken Fund Flow Index, which tracks capital inflows and outflows from assets, has been on an upward trajectory since early November.
During the periods that Solana’s price decreased, the Cash Flow Index continued to increase. More importantly, the index remains above the zero line, which indicates major net inflows. During the recent decline, the index did not decrease, which indicates that the capital is still present in the market.
At the same time, the speculative supply is clearly starting, as seen by the HODL Waves indicator, which ranks groups according to how long Solana has been held. Wallets that hold Solana from one day to one week reduced their share of the offer from about 6.0% to 3.9% between December 24th and January 7th. This represents a 35% drop, even though Solana gained about 8% during the same period.
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Another short-term group, holders of a three-month currency, also reduced their exposure. Its share decreased from 21.57% to 19.95%, a decrease of about 7.5%.
This is important because speculative selling usually puts pressure on the price. This time, the price remains firm, which shows that the selling pressure is absorbed.
Pressure buying jumps 740% as strong hands absorb supply
This absorption is evident in the data of the net holding position, which follows the position of long-term investors. Since December 24, the buying pressure has increased greatly.
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The change in net position increased from approximately 189,000 SOL to approximately 1.59 million SOL as of January 7. This represents a 740% increase in net buying pressure in less than two weeks. The largest influx was seen on January 7, the day after the ETF product was announced to the public.
This rally explained why Solana avoided a deeper correction despite the clear profit from short-term traders. This coincided with the gradual increase of the CMF index, confirming that capital flows in and not out.
Select from here the price levels of the next stage. Solana needs to stay above $133 to keep the structure stable. Pullbacks towards $130 remain in the right shoulder formation. Even a move towards $121 will not invalidate the pattern.
To confirm the growth, Solana must regain the level of $ 143. The end of each day above this level will confirm the discovery and activate the path towards $ 178.
As a result of low speculative supply, high buying pressure, and continuous positive capital flow, the Solana Correction has continued to appear healthy. The next step depends on whether the SOL price can turn this position into a breakout.
