SOL eyes breakout as traders pile into long positions amid ETF inflows
Solana (SOL) is showing signs of a potential price reversal as it trades near a long-established support zone at $118. As of Jan 28, 2026, SOL was trading around $124.50 (+1.55% 24h) while 24h volume fell ~40% to $3.67B, indicating cautious participation. Technicals: daily ADX is 31.26 (trend strength above 25) but price remains below the 50-day EMA, signalling an overall downtrend despite a strong directional move. If $118 holds, historical patterns suggest a possible ~16% rally toward $146. On-chain and institutional signals support the bullish case: spot Solana ETF inflows have been steady since Jan 16 per SoSoValue, and Solana TVL rose 4.66% to $36.66B (DeFiLlama). Derivatives data (CoinGlass) shows concentrated leveraged exposure with about $157.18M in long positions versus $66.71M in shorts, and key liquidation clusters at roughly $121.3 (downside) and $125.7 (upside). Bottom line for traders: watch the $118 support — a confirmed hold could trigger short-term upside to $146, but a breakdown below that level would invalidate the bullish thesis. Monitor ETF inflows, TVL trends, trading volume, and leverage clusters for confirmation and risk of sharp deleveraging.
Bullish
The article presents multiple converging bullish signals for SOL in the short term: a historically reliable support at $118 that has produced reversals, an ADX above 25 indicating a strong directional trend, steady inflows into spot Solana ETFs since Jan 16, and rising TVL that points to improving on-chain demand. Derivatives data showing substantially more long than short leveraged positions and concentrated liquidation clusters near $121–$125 suggests traders are positioned for upside and that momentum could fuel a quick move to the $146 target if $118 holds. However, important bearish caveats remain — price is still below the 50-day EMA and 24h volume has dropped ~40%, signalling lower participation and vulnerability to sharp sell-offs or deleveraging. Historically, assets with ETF-driven inflows and concentrated leverage have produced fast rallies followed by volatile corrections when support breaks or liquidity thins. For traders: the expected immediate impact is bullish (short-term rally potential), but risk management is crucial — use stops beneath $118, monitor ETF flow data, TVL, and leverage clusters to avoid rapid liquidations. Longer-term direction will depend on whether SOL can reclaim and sustain levels above moving averages and maintain steady institutional inflows.