Introduction
Solana (SOL) is hovering near a critical monthly support zone around $132, a level that has historically sparked significant upward moves. Traders are closely watching whether the cryptocurrency can hold this support as Franklin Templeton’s new spot SOL ETF begins trading with notable inflows. A successful bounce could set the stage for a rally toward targets of $263 and $315.
Key Points
- SOL is testing a long-term ascending channel support on the monthly chart, a historically strong reversal zone that could propel prices toward $315 if it holds.
- Franklin Templeton's new spot SOL ETF, launched December 5, applies a 0.19% fee, stakes its holdings, and saw $531M in inflows during its first week of trading.
- Short-term price action suggests consolidation below $140, with traders watching the $134–$135 zone for a potential bounce toward $145–$149 or a retest of lower support near $124–$125.
A Critical Test on the Monthly Chart
Solana (SOL) is currently trading near a pivotal monthly support zone, with its price hovering around $132. According to a chart analysis shared by Rose Premium Signals, SOL is sitting at the lower boundary of its long-term ascending channel on the 1-month timeframe. This specific zone has previously acted as a foundational base for multiple upward moves in SOL’s price history. The current price action suggests this level is holding for now, maintaining the integrity of the broader price structure as long as the trendline support is not decisively broken.
The technical setup outlined by Rose Premium Signals identifies two significant upside targets should a successful bounce occur from this support: $262.62 and $315.43. These levels align with the middle and top boundaries of the ascending channel, respectively, framing a clear potential path for a major reversal. This analysis, originally posted on social media platform X, frames the current test as a “historically strong reversal zone.”
Adding to the long-term perspective, an analysis from CryptosBatman on the weekly chart shows SOL has traded within a wide range between $125 and $250 for nearly two years. The price has once again reached the lower edge of this established range, followed by a small bounce. Notably, the Stochastic RSI indicator on this timeframe is showing a bullish golden cross while in oversold territory, which CryptosBatman suggested “might be a good setup here for a potential bounce.” The validity of this multi-year range is contingent on the price staying above the $125 support level.
Short-Term Consolidation and Key Levels
Zooming into shorter timeframes reveals a more immediate battle for control. On the 4-hour chart, analysis shared by BitGuru shows SOL reacting at a previously tested support zone between $124 and $125. After dipping to this level in late November, the asset bounced and has been moving around $138, showing visible consolidation below the $140 psychological level.
BitGuru’s assessment notes that “If it holds above this level, a short-term move upward is possible.” The key for bulls in the near term is maintaining control above the $134–$135 zone. If successful, this could propel the price toward initial resistance targets at $145.84 and $149.31. Failure to hold this area, however, would likely lead to a retest of the lower support zone near $124–$125, increasing pressure on the longer-term monthly support.
ETF Inflows and Fundamental Catalyst
Amid this technical tension, a significant fundamental development is unfolding. Financial giant Franklin Templeton launched its spot Solana ETF on December 5. The fund currently holds 17,000 SOL tokens, worth approximately $2.4 million, applies a management fee of 0.19%, and will stake its holdings to generate yield.
As reported by CryptoPotato, ETF flow data reveals $531 million in net inflows during the product’s first week of trading. While Solana ETFs have experienced some capital outflows since November 26—with brief inflows returning on November 28, December 2, and December 4—the total assets under management have remained robust, staying above $900 million. A recent fresh inflow of $4.59 million, as tracked by SoSoValue, points to a possible shift in sentiment and renewed institutional interest.
The convergence of this technical support test with the launch and initial flows of a major spot ETF creates a critical juncture for SOL. The ETF provides a new conduit for institutional capital, while the chart patterns define the key levels that will determine the market’s next directional move. Whether SOL uses the historical monthly support as a springboard toward the $315 target or breaks lower will depend on buyers’ ability to defend the zone amidst evolving ETF-driven liquidity.
📎 Related coverage from: cryptopotato.com