SOL Is Testing a Key Supply Area as Institutional Demand Comes Back

Solana (SOL) is currently trading under $90, but we're seeing demand for it starting to increase again. This week, institutions have put over $20 million into SOL. Also, information from the derivatives market suggests traders are setting up new positions, which means both big investment firms and individual investors are showing interest again.

We're seeing stronger flows from institutional investors. Looking at ETF data, Thursday alone saw $15.5 million come in. This was the third day in a row of positive inflows, bringing the total for the week up to $22.14 million. Meanwhile, the Open Interest for futures has gone up to $5.53 billion, which points to new bets being placed in the leveraged trading market. When Open Interest grows like this, it usually shows people are becoming more confident. If this momentum keeps up, it could help the spot price continue its upward trend.

If we look at the charts, SOL is trading at about 88.7 and is still following the upward trendline that started in early April. The overall pattern still looks bullish, as it's kept its higher lows. But the price is now moving into an important supply area, between 87.5 and 91.2. This is where we're starting to see some selling pressure emerge.

Right now, resistance levels are at 91.2, then 94.0, and after that, 97.6. If the price goes down, there's support between 85 and 84, which is right where the trendline is. If it drops below this point, it might head towards 82.5, 80, and even 75.8.

Momentum seems to be picking up. We're seeing a bullish crossover and the histogram is getting stronger, which could mean the trend will continue. However, as long as the price stays within that supply area, there's still a chance it could get pushed back down or just trade sideways for a while.

If SOL manages to stay above 85–84 and then breaks past 91.2, it's pretty likely it will keep going up towards 94 and 97.5. But if it gets rejected and drops below the trendline, we might see it pull back to 82.5 or 80. In short, the trend looks bullish. However, the price is currently sitting at a really important spot where things could go either way.

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