Solana (SOL) remains firmly above the $127 level after a week of consolidation, even as the broader crypto market faces continued bearish pressure.
While SOL has seen steady sales, it continues to attract strong institutional interest, setting it apart from many large assets. At the same time, the broader market is showing the first signs of stabilization, with Bitcoin hovering around $89,000 and Ethereum trading around $2,950.
Despite this tentative recovery, uncertainty remains high as the US Senate temporarily suspends sessions to review and flag a crypto-related bill, leaving regulatory clarity unresolved in the near term. An important bullish signal for Solana is the strong increase in ETF inflows. Over the past week, exchange-traded funds focused on Solana recorded net inflows of more than $11 million, outperforming both Bitcoin and Ethereum ETFs over the same period.
🚨BREAKING: SOLANA ETF INTROOM outperforms ETHEREUM AND BITCOIN!!!🚨 pic.twitter.com/JoFpDl2N2u
— SolanaNews.sol (@solananew) January 23, 2026
Major institutional players, including Fidelity, Grayscale and Bitwise, have driven this demand. Fidelity’s Solana ETF (FSOL) led the way with single-day inflows of $9.85 million, bringing cumulative inflows to about $148 million. In total, Solana ETFs now manage approximately $1.08 billion in net assets, giving SOL a net asset ratio of 1.50% within these products.
In contrast, Bitcoin ETFs saw outflows of about $38.5 million, while Ethereum ETFs fell by about $64.9 million, highlighting a clear shift in institutional bias toward Solana. In addition to ETFs, Solana is also gaining strength in the field of chain activities. Recent data shows that Solana leads all blockchains in decentralized exchange (DEX) volumes, with approximately $4.4 billion in transactions recorded over 24 hours.
This figure significantly exceeded competing networks, underscoring the growing user adoption and liquidity in the Solana ecosystem. With trading activity surpassing that of competitors like Binance Smart Chain and Ethereum, analysts see this as a strong indicator of Solana’s growing role in decentralized finance and the potential for continued growth even amid broader market uncertainty.
Solana price consolidates near $127, signaling a potential reversal
Solana Price trading pair steadily is trading at $127 level after a sharp decline from recent highs. Despite continued weakness in the broader crypto market, SOL has managed to remain above a key support zone, indicating near-term stability. The price action shows that sellers have slowed near the $125-$127 area, allowing Solana to move sideways instead of continuing to decline. This consolidation suggests that the market may be preparing for its next change in direction.
Previously, Solana faced a strong rejection near the $145-$150 resistance range, where selling pressure increased and pushed the price lower. That zone remains an important barrier to any upward recovery. Since the rejection, SOL has returned to a historically important demand area, where buyers previously intervened. The fact that this level is holding gives confidence that the downward trend can remain limited for the time being.
SOLUSD Chart Analysis. Source: Tradingview
The four-hour Relative Strength Index (RSI) is hovering around 38-39, which puts SOL close to oversold conditions. Although the RSI has not yet provided a clear bullish signal, the leveling off movement indicates that bearish momentum is weakening. In similar past situations, this type of near-strong support RSI behavior has often led to short-term relief increases.
If buyers continue to defend the current consolidation zone, Solana could attempt a recovery towards the USD 140 level. A break above that area would improve the bullish outlook and open the door for a retest of the $145-$150 resistance range. Such a move would likely require stronger market sentiment and increased buying volume.
However, the risks remain skewed to the downside. A decisive move below the USD 125 support would invalidate the consolidation structure and expose Solana to further declines towards the psychological USD 120 level. Until a clear breakout or collapse occurs, SOL is expected to remain within the range, with traders watching closely for confirmation of a reversal or continued weakness.
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