Key Highlights
- Solana retreated from $125 resistance and currently hovers around $118 support.
- The breach of an ascending trendline has converted $120-$121 into overhead resistance.
- Market analyst Sweep anticipates a brief correction before potential advancement to $150.
- Stablecoin liquidity on Solana reached an all-time high of $17 billion, surging 5% weekly.
- Solana-focused ETFs accumulated 2.32 million SOL tokens valued at approximately $278 million in 14 days.
Solana (SOL) experienced a rejection after attempting to establish support above the $125 threshold. Currently trading around $118, the cryptocurrency is challenging a crucial support region.
Market participants holding long positions now face a pivotal decision. Successfully defending this zone could prevent further decline toward the $100-$105 range.
Technical analyst Jesse Peralta examined the movement using a two-hour timeframe. His assessment revealed that SOL breached its upward-sloping trendline around $120-$121, effectively transforming this area into a barrier for upward movement.
This trendline previously underpinned SOL’s rally from approximately $96. Its loss signals diminishing near-term bullish momentum.
The $115-$118 region now serves as the primary defensive barrier. Maintaining stability here could enable SOL to establish a fresh foundation for subsequent upward attempts.
Technical Outlook Points to Correction Before $150 Target
Solana approaches an extensive high-volume node spanning $120 to $200. This broad zone has witnessed substantial historical trading activity, establishing it as a formidable resistance barrier.
Analyst Sweep forecasts a brief correction during the early week period. His analysis suggests a potential decline targeting $100-$105 before SOL initiates another attempt toward $150.
Sweep highlighted a notable surge in SOL long positions on Bitfinex, which climbed significantly to approximately 84,398 contracts. According to his interpretation, this increase signals traders establishing positions in anticipation of a reversal.
While the data doesn’t distinguish between retail and institutional participants, it demonstrates growing market confidence in a potential recovery.
Record Stablecoin Liquidity and Strong ETF Accumulation
Stablecoin supply on the Solana network has surpassed $17 billion, establishing a new all-time high. This represents over 5% growth within seven days, injecting more than $800 million in additional liquidity.
The worldwide money supply simultaneously reached $103.66 trillion in August. Major central banks including the Federal Reserve, European Central Bank, Bank of Japan, and People’s Bank of China collectively expanded liquidity by approximately $1 trillion during that period.
Exchange-traded funds focused on Solana acquired 2.32 million SOL tokens, representing approximately $278 million in capital, throughout the previous fortnight. Aggregate ETF holdings currently stand at $2.283 billion.
Additionally, Solana dominates the altcoin spot ETF landscape. According to data distributed by Jesse Peralta, SOL commands 46% of trading volume, surpassing Zcash at 27%, XRP at 12%, and Hyperliquid at 11%.
Market commentator Gordon Gekko reflected on accumulation strategies. He noted that the initial plan focused on building positions below $80, but the strategy has now evolved to accumulation under $120, describing the upcoming phase as “the real move.”
A significant whale transaction also tested market resilience. Whale Alert detected a transfer of 500,000 SOL to Binance on September 26, valued at roughly $60.5 million, with an estimated cost basis around $121.
The market absorbed this sale with minimal impact. SOL concluded that trading session with a mere 0.3% decline and subsequently gained 0.4% the next day.
Critical price levels currently under observation include $115-$118 for support and $120-$125 for resistance. A breakdown beneath $100 would expose the $90-$80 range.
According to current market data, SOL is trading at $118.17, representing a 2.99% decrease over the past 24-hour period.
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