The recent price action of Solana (SOL) has investors on alert once again. After dropping to multi-month lows near the lower $80 range, SOL saw a keen rebound of over 6% in the tiny term, briefly allaying fears of an immediate crash.
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However, the economic recovery has done little to resolve the broader debate. Analysts currently believe that Solana is between soft support and upper resistance, with the $98-$108 zone becoming a key test for growth if momentum continues.
Despite the rebound, market conditions remain cautious. SOL continues to trade well below previous support-turned-resistance levels, and several technical indicators and chain indicators suggest that the market has yet to find a clear directional bias.
SOL's price trends to the downside on the daily chart. Source: SOLUSD on Tradingview
Support holds, but the SOL trend remains frail
Solana is currently consolidating in the $83-$87 area, a zone that many analysts consider critical near-term support.
Multiple reports highlight that SOL has lost its previous monthly support of $98 to $100, confirming that the broader downtrend remains intact. The price structure continues to show lower highs and lower lows, and SOL is trading below key moving averages, reinforcing bear control.
At the same time, oversold signals are starting to appear. The relative strength index in the higher time frames has fallen to levels that have historically coincided with stabilization phases.
Some analysts also point to Cash Flow Index is approaching extreme readings, suggesting that selling pressure may be losing intensity even if buyers have not yet moved decisively.
If the $85 area fails, downside targets will center around $78-$80, with deeper support near $70. These levels align with historical demand zones seen during previous downturns.
Solana ETF outflows and on-chain signals add to the pressure
On-chain data added another layer of complexity. More than 1 million SOLs reportedly left centralized exchanges within 72 hours, which analysts interpret as a stress repositioning rather than a clear accumulation.
In parallel, ETFs linked to Solana recorded net outflows of approximately $11.9 million, the second largest on record.
Historically, immense ETF outflows have sometimes occurred near capitulation phases, but they have also confined short-term gains by reducing institutional participation. Data on long-term bondholders also shows a slowdown in accumulation, removing a source of price support that cushioned earlier declines.
Why $98-$108 Matters to Bulls
Looking ahead, analysts agree that any significant recovery must regain the $98-$108 region. This zone represents both former support and the psychological barrier near $100. February forecasts from several market monitors suggest SOL could trade in this range if it stabilizes above current levels.
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A sustained move above $108 could open the door to a broader trend reassessment, while a repeated rejection would reinforce the dominant bearish structure. Solana remains in a wait-and-see phase, with investors keeping a close eye on whether support holds or if another strand comes before a solid base is formed.
Cover image from ChatGPT, the SOLUSD chart on Tradingview
