Solana Rebounds From Key Support While Institutional Demand Fuels Bullish Outlook

Solana (SOL) is picking up steam again after a strong bounce off the $94 support area. Both what big institutions are doing and the data from the derivatives market suggest it might climb even higher.

People are still very interested in SOL, especially big investment firms. Spot Solana ETFs kept their good run going, pulling in another $19.07 million on Tuesday, after getting $26.57 million the day before. This means money has been flowing into these ETFs for seven straight days since May 4, showing a steady belief in Solana's medium-term future.

The derivatives market is also looking positive. Funding rates turned positive and went up to 0.0041% on Wednesday, suggesting that traders betting on price increases are increasingly ready to pay to hold their positions. This kind of shift usually points to growing optimism throughout the market.

CoinGlass data also backs this up, showing Solana's long-to-short ratio climbed to 1.06. That's one of the strongest positive signals we've seen in more than a month. With the ratio staying above one, traders are clearly favoring bets that the price will go up, rather than down.

Looking at the charts, SOL is still trading in a positive pattern on the 4-hour timeframe. It recently broke above a falling trendline and got back above the $88–91 area. This made the upward movement stronger and shifted market control back to the buyers.

The price recently touched the main resistance area near $97.7, where buying has slowed down a bit. However, as long as SOL stays above the $91 support level, the broader trend still suggests it could go higher.

If it clearly breaks above $98, that could kick off the next phase of price increases. It might then head towards the important $100 mark and possibly even reach the $104 area.

Here's a quick look at the technical levels:
Immediate resistance: $97.68
Breakout trigger: Above $98
Key support: $91.18
Strong demand zone: $84–85
Upside targets: $100 and $104

While momentum indicators still look good, it wouldn't be unusual to see some short-term sideways movement or a small pullback before the next big push higher.

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