Solana Rises Nearly 5% as Derivatives and ETF Data Point to Improving Market Sentiment

Solana is up almost 5% on Monday following a Doji candle formation that reflected hesitation among traders over the weekend. Derivatives data now show a rising funding rate, suggesting a decline in incentives to hold short positions. At the same time, Solana-focused ETFs have posted inflows for six straight weeks, underscoring ongoing institutional demand.

Strong Derivatives Activity Highlights Steady Interest

Open Interest in Solana futures remains above $7 billion, indicating stability in derivatives capital flow. CoinGlass reports OI at $7.16 billion, largely unchanged over the past day. The OI-weighted funding rate, however, has climbed sharply to -0.0018% from -0.170% on Sunday. A shift into positive territory would imply a clear rise in bullish conviction, with long-position holders paying a premium.

ETF Inflows Cool but Still Maintain a Six-Week Streak

Institutional inflows into Solana ETFs totaled $20.30 million this week, down from the prior week’s $108.34 million. Even with the slowdown, Friday’s $15.68 million inflow helped extend the momentum to six consecutive weeks, signaling steady appetite from institutional players.

SOL Eyes a Critical Resistance Level After Holding Key Support

Solana continues to trade above the $121–$127 demand zone and is now approaching a descending resistance trendline drawn from the October 6 and October 27 swing highs. A clean daily close above $140 would strengthen the case for a short-term bullish breakout.

Key EMAs Could Challenge a Breakout Attempt

If SOL breaks above the trendline, it could still meet resistance at the declining 50-day EMA at $153 and the 200-day EMA at $173. These moving averages remain significant hurdles that could slow or halt upward momentum.

Technical Indicators Show Gradual Shift Toward Neutral–Bullish Momentum

The Relative Strength Index sits at 45, moving toward the midline after weeks of bearish pressure. Meanwhile, the MACD maintains an upward trajectory above its signal line, hinting at building bullish momentum even as it approaches a zone where a bearish crossover could still develop.

Downside Scenario

A daily close below $121 could embolden sellers and open the door for a move toward April’s low near $95.