Solana Price Analysis: Bullish RSI Divergence and ETF Inflows
Solana’s price has been exhibiting a bullish RSI divergence, rising Chaikin Money Flow (CMF), and steady ETF inflows at a key support level, sparking hopes of a potential reversal. However, a decisive close above resistance is necessary to confirm a sustainable uptrend. 
According to market analysis, Solana’s price chart shows initial technical signals that suggest potential buyer interest despite the recent declines. The cryptocurrency made a lower low between mid-November and early December while its Relative Strength Index (RSI) formed a higher low, creating a bullish divergence pattern. RSI measures momentum and identifies potential oversold or overbought conditions in an asset.
Technical Indicators and Support Levels
The Chaikin Money Flow (CMF) indicator has also recently risen and is approaching its trend line. The CMF tracks money flow to indicate whether institutional buyers are building positions. A break above the trend line would signal increased buying pressure. A technical analyst noted on social media that Solana’s price is currently touching a weekly support trendline that has driven rallies since 2023, suggesting the level is of historical significance for the asset.
Solana (SOL) spot exchange-traded fund inflows have remained positive for several weeks, according to available data, with only a minor decline recorded in early December. Cumulative ETF inflows have been significant, indicating continued institutional interest despite price weakness. Market observers have identified ETF demand as a factor driving Solana’s price above recent support levels. Spot ETFs can absorb circulating supply, potentially reducing price pressure.
Network Activity and Price Movement
Network activity has increased with recent developments, including the tokenization of the Kalshi prediction markets on Solana and the growing interest in meme token projects like Pippin, which typically correlate with retailer participation. Technical analysts say Solana needs to close above a key resistance level that has limited rallies since late November to confirm a reversal pattern. According to the chart data, the last close above this resistance occurred earlier this month.
A breakout above resistance could pave the way to higher price zones that previously acted as rejection points, analysts said. Conversely, a close below nearby support would invalidate the bullish RSI and CMF setup and threaten the long-term weekly trendline. The price of Solana is currently fluctuating between strong ETF inflows and general market weakness. According to the analysis, the technical reversal configuration needs confirmation through a break above key resistance before a recovery scenario becomes viable.
For more information on Solana’s price movement and analysis, visit https://crypto.news/solana-price-shows-bullish-rsi-etf-inflows-as-price-tests-key-support/
