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The price of Solana continued to trade in a defined consolidation range despite a renewed optimism in the general markets. Solana repeatedly tested the resistance, but failed to achieve a decisive breakthrough.
Institutional morale seemed to be improving. However, the chain’s activities suggest a different story. While participants in traditional markets stand to gain, active investors on the network reduce their exposure.
Some Solana holders are buying
Solana ETFs recorded an outflow of $30.86 million on February 25. This represented the highest one-day outflow in more than two and a half months. The increase in flows reflects growing institutional interest in gaining exposure to Solana through regulated investment vehicles.
Strong flows into index funds often indicate improved confidence at the macro level. Investors seem optimistic about… Solana’s long-term potential. However, daily increases do not confirm continued demand. Without a sustained flow of capital, the Fund’s activities alone may not lead to an immediate breakthrough in Solana’s price.
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Technical indicators indicate that momentum is developing below the surface. The Compressed Momentum indicator is currently in active compression. This pattern is often preceded by periods of high volatility in cryptocurrency markets.
Black dots on the indicator indicate possible upward pressure. When the pressure is released, price volatility usually expands sharply. If the meeting coincides with a strong demand, it can strengthen Solana’s upward momentum. However, the expansion of volatility can move in any direction.
Some Solana holders are selling
Despite the macroeconomic support, the behavior in the chain indicates caution. In the last three weeks, about 3.9 million Solanas worth more than $298 million have been transferred to the exchanges. Transfers to exchanges usually indicate an intention to sell.
Continued flows in the exchanges suggest that holders remain skeptical. Some investors may recover previous losses, while others may act defensively due to wider uncertainty in the cryptocurrency market. Continued selling pressure reduces the possibility of an immediate breakthrough in Solana’s price.
The price of the SOL is just around the corner
Solana is currently trading in a range between resistance at $88 and support at $77. Several attempts to break this range have failed. Price action reflects the balance of power between buyers and sellers. In the absence of an obvious driver, this price range can persist.
Macroeconomic signals and cross-chain signals indicate that continued sideways trading seems likely. Sol can be limited to the range between $88 and $77 cheaply. ETF inflows provide support, but continued selling on exchanges weakens the upside momentum.
A decisive move above $88 invalidates the neutral to bearish scenario. This breaks the resistance and opens the way towards $97. Crossing $97 strengthens the possibility of Sol moving towards $100, provided that investors in the network reduce sales and the general mood in the cryptocurrency market remains stable.
