Key Insights:
- Solana price rises to $87 after a 20% bounce from $72, signaling potential recovery after heavy losses.
- Spot inflows of $7.69 million signal buying interest, but institutional investors remain cautious with ETF outflows.
- Solana’s $100 resistance remains a challenge, while a close above $85 could indicate further recovery.
Solana (SOL) is trading near $87.10, following a 20% recovery from the $72 crash low, which marked the token’s lowest point since early 2024. The recent rebound comes amidst a shift in market flows, as positive spot inflows contrast with continued outflows from Solana-focused ETFs. Despite the bounce, institutional investors appear hesitant to commit fully, reflecting ongoing uncertainty around the token’s price trajectory.
CoinGlass data highlights $7.69 million in spot inflows on February 8, reversing the outflows that had dominated the market during the recent crash. This positive shift indicates that some buyers are finding current price levels attractive after Solana’s significant 66% drop from September’s highs. The reversal of flow patterns often suggests that near-term selling pressure is easing and that stronger investors are beginning to accumulate the asset.
$100 Mark Still a Key Resistance
On the daily chart, Solana continues to trade below a descending trendline formed in September, which has constrained every attempt at a rally. The $100 price point, once a significant support level, now stands as a formidable resistance. While the recent bounce to $87 is a promising 20% recovery, the price remains far from reclaiming the broken support. Additionally, the trendline continues to slope downward, capping any further upward momentum near $95, presenting a significant barrier for Solana’s recovery.
While spot flows have turned positive, Solana-focused ETFs have seen substantial outflows, totaling 67,632 SOL, equivalent to $5.68 million, in the past week alone. This includes a $1 million exit on February 6, marking the seventh such instance of heavy outflows. These persistent outflows signal that institutional investors remain skeptical about Solana’s price recovery, despite the encouraging signs from spot markets.
Derivatives Market Shows Balanced Sentiment
In the derivatives market, Solana’s open interest stands at $5.33 billion, reflecting a slight decrease of 1.18%, as the market consolidates. Trading volume has dropped by 24.33%, indicating a cooling in activity following the sharp volatility during the price crash. The long-to-short ratio is now almost balanced at 1.01, signaling a shift away from the bullish bias that prevailed before the liquidation cascade. Meanwhile, $8 million worth of positions were liquidated in the past 24 hours, suggesting that leverage has been significantly cleared.
Solana’s recovery remains under pressure, with the $100 resistance still unbroken. However, the positive spot inflows and the reduction of leverage could provide a foundation for future growth if broader market conditions stabilize. A daily close above $100 would signal that the market has absorbed the recent sell-off, while a close below $85 would reinforce the bearish outlook and suggest a possible retest of the $72 low.
