Solana (SOL) is holding above the $120 level after a modest pullback, even as technical indicators and derivatives positioning point to growing downside pressure. As of Tuesday, the token was trading just above $120 following a nearly 2% decline the previous day, placing it near the lower boundary of a descending wedge pattern that has been forming on the daily chart.
The mixed signals come at a time when institutional and retail behavior appear to be diverging. While Solana-focused exchange-traded funds (ETFs) continue to record inflows, derivatives data suggests that traders are increasingly positioning for further downside, reflecting broader uncertainty across cryptocurrencies markets.
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TLDR: ETFs make it easier to invest in Solana, but they don't necessarily mean more price growth.
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Solana ETFs are exchange traded funds that track the price of the Solana… pic.twitter.com/fqVejjcD2z
— Hush (@HushWealth) December 29, 2025
ETF Inflows Show Steady Institutional Demand
Despite a slowdown in weekly inflows, institutional interest in Solana has not disappeared. SOL ETFs recorded inflows of $2.93 million on Monday, following a net-zero flow on Friday. Although the prior week’s total inflow of $13.14 million marked the lowest weekly figure in several weeks, down from $66.55 million previously, the continued daily inflows indicate that some institutional participants remain engaged amid market volatility.
Source: Sosovalue
ETF activity is often viewed as a proxy for longer-term positioning, as these vehicles typically attract more conservative capital. The persistence of inflows, even at reduced levels, suggests that institutions are maintaining exposure to Solana while the broader market searches for direction.
Ecosystem Signals: Memecoin Activity Returns on Solana
Another factor drawing attention back to Solana’s ecosystem is renewed activity in its memecoin sector, where The White Whale (WHITEWHALE) has emerged as a focal point.
The community-led token has seen an unusually sharp rise in trading activity since launch, with data cited by CCN indicating a rapid increase in price and market capitalization that has pulled speculative capital back toward Solana-based memecoins after months of relative inactivity.
The White Whale coin is at $68m market cap.
INSANE. @TheWhiteWhaleV2 ?
– Wynn pic.twitter.com/K4imvJpp1B
— James Wynn (@JamesWynnReal) December 29, 2025
Analysts tracking on-chain behavior note that discussion among key opinion leaders intensified ahead of the rally, while early accumulation by several wallets preceded broader social engagement and listings on centralized exchanges such as Bybit and Bitrue.
While memecoin movements remain highly volatile and disconnected from network fundamentals, the resurgence of activity around WHITEWHALE underscores how shifts in risk appetite within niche segments can influence short-term sentiment across the wider Solana ecosystem.
Derivatives Data Points to Sell-Side Bias
In contrast, derivatives markets are showing signs of rising bearish sentiment. According to CoinGlass data, Solana futures open interest climbed to $7.68 billion on Monday, up from $7.54 billion the day before. Rising open interest generally indicates that new capital is entering the market, but it does not reveal directional bias on its own.
The long-to-short ratio provides additional clarity. Short positions now account for approximately 52.49% of open futures positions, up from 49.85% over the past 24 hours. This shift suggests that a growing share of traders are betting on further downside, creating a sell-side dominance despite the influx of new capital.
Source: Coinclass
Technical Structure Remains Under Pressure
From a chart perspective, Solana remains confined within a descending wedge defined by two converging trendlines. The recent rejection near $130 has increased the risk of a deeper pullback toward the lower support trendline, which aligns near $115 based on recent swing lows from November 21 and December 18.
Momentum indicators remain inconclusive. The Relative Strength Index (RSI) is hovering around 41, below the neutral 50 level, signaling persistent bearish pressure without entering oversold territory. Meanwhile, the Moving Average Convergence Divergence (MACD) is attempting to stabilize near the zero line, hinting at a potential reduction in downside momentum.
Source: TradingView
Broader Market Implications
Solana’s current setup highlights the tension between institutional accumulation and short-term trader positioning. Similar dynamics have emerged across other major altcoins during periods of consolidation, where ETF flows and derivatives sentiment move in opposite directions.
As long as SOL remains above key support zones, market participants are likely to remain cautious. The interaction between technical levels, derivatives positioning, and institutional flows will continue to shape Solana’s role within the broader crypto market as year-end liquidity and sentiment remain uneven.
Bitcoin Hyper: Best Crypto Presale of 2025
Alongside on-chain indicators suggesting increased token distribution across the SOL network, a parallel strand of market interest has been developing around infrastructure aimed at broadening Bitcoin’s role in decentralized finance.
Bitcoin Hyper (HYPER) is one such project, presenting itself as a Solana-based Layer-2 designed to support smart contracts and higher-throughput applications that ultimately settle back to the Bitcoin blockchain. This approach aligns with the broader BTCFi narrative, which seeks to expand Bitcoin’s functionality without altering its underlying protocol.
Based on publicly available disclosures, the Bitcoin Hyper presale has raised approximately $29.9 million to date. With strong investor backing and revolutionary technology, Bitcoin Hyper could emerge as the next star in the crypto market.
