After weeks of persistent declines, Solana is demonstrating renewed strength. The cryptocurrency is currently trading around the $140 level, with multiple technical and fundamental indicators suggesting a potential reversal of its negative trend. Market participants are now questioning whether this represents a sustainable recovery for the once high-flying digital asset.
Institutional Adoption Provides Major Boost
The most significant development for Solana comes from traditional finance, where U.S. regulatory approval for Solana ETFs has opened the floodgates for institutional capital. Major financial firms including Fidelity, VanEck, and 21Shares now offer regulated investment products that have already attracted $390 million in SOL investments.
This institutional endorsement provides Solana with an entirely new foundation. Conservative investors can now gain exposure to the cryptocurrency without dealing with the technical complexities of wallets and private keys. The regulatory acceptance also sends a powerful positive signal throughout the digital asset market.
Technical Indicators Turn Positive
Solana’s recovery appears technically grounded. The asset has rebounded from its annual low of $130 and is gradually advancing. More importantly, the price has broken through a key downward trend line and now trades above the 100-hour moving average. The upcoming resistance levels at $145 and $150 will determine whether this represents a temporary pause or the beginning of a genuine recovery phase.
Network Activity Presents Mixed Picture
On-chain metrics reveal a complex situation. Daily active addresses have declined to an annual low of just 3.3 million—a substantial drop from the over 9 million recorded at the beginning of the year. However, recent data shows promising signs: an 18% increase in active addresses and a 9.1% rise in transactions indicate renewed interest in the network.
Should investors sell immediately? Or is it worth buying Solana?
Despite user volatility, Solana continues to process transactions at an impressive scale. Approximately 56 million transactions every 24 hours demonstrate the network’s technical robustness. In decentralized exchange volume, Solana has occasionally surpassed other major blockchain platforms.
Bullish Signals Emerge
While broader cryptocurrency sentiment remains cautious, Solana-specific indicators are showing early signs of optimism. Large holders, often called “whales,” are withdrawing significant amounts from exchanges—a classic signal that they anticipate higher prices. In derivatives markets, long positions have suddenly become dominant.
The combination of technical recovery, institutional interest, and ecosystem growth could potentially establish a solid foundation in the $130-$140 range. With more than 11,500 new developers joining the ecosystem this year and the upcoming Alpenglow upgrade scheduled for 2026, Solana maintains substantial growth potential.
The critical question remains whether these factors will culminate in a genuine trend reversal or prove to be merely temporary enthusiasm.
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