Solana is testing investor confidence as the price of SOL retreats back to key support levels, just as the network continues to grow in many areas. After briefly pushing above $147 earlier this week, the token failed to hold its gains and is now trading below $145.
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The reversal comes at a time when Solana is seeing growing institutional interest, growing adoption of real-world assets, and new user-focused initiatives, creating a gap between short-term price pressure and long-term ecosystem growth.
SOL's price moving sideways on the daily chart. Source: SOLUSD on Tradingview
SOL Price Tests Critical Support Zone
SOL entered a short-term correction after failing to clear the $150 resistance area. The price dropped below the $146 and $145 levels, moving below the 100-hour simple moving average. On the other hand, technical analysts are watching the $141–$140 area, where the bullish trend line meets the Fibonacci support.
If the price of SOL falls below $140, the next support remains near $132, with additional risk towards $124. On the downside, resistance remains near $146 and $148. A confirmed move above $148 could open the door to a retest of $155 and possibly $162.
Momentum indicators show a sense of caution. The hourly RSI remains below 50, and the MACD continues to show bearish pressure. Despite a healthy trading volume of around $5 billion in 24 hours, SOL is still down about a third from its value last year and well below its previous peak near $293.
Regulatory Developments and Solana ETF Entry
Aside from price action, regulatory issues in the US may impact Solana’s mid-term outlook.
A draft bill known as the “Clarity Act,” released by the Senate Banking Committee, proposes to reclassify certain categories of cryptocurrencies through exchange-traded products as “non-coincidental” assets starting in 2026. This will ease some of the SEC’s disclosure requirements for assets such as SOL.
If passed, the proposal would put Solana in the same regulatory category as Bitcoin and Ethereum, potentially improving institutional access. The first signs of interest are already emerging.
On January 15, US spot Solana ETFs recorded $23.57 million in inflows, the highest in four weeks. However, ETF assets still only represent about 1.5% of SOL’s market capitalization, limiting their immediate impact on value.
Network Growth Outpaces Price Momentum
While the price of SOL is struggling, Solana’s network continues to grow. By 2025, blockchain will process $1.6 trillion in trading volume, accounting for about 12% of the crypto market. Its DeFi ecosystem remains concentrated with platforms like Jupiter, Raydium, Orca, and Kamino, with TVL holding close to $11.5 billion.
The big milestone came as Solana’s real-world ecosystem (RWA) reached a record $1.15 billion, powered by US Treasury tokens, equities, and institutional funds. This points to the growing use of Solana as a layer of traditional clothing.
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User engagement programs are also growing. Solana’s Seeker mobile is issuing a massive SKR token airdrop to over 100,000 users, while Interactive Brokers has enabled 24/7 USDC deposits through Solana’s network, improving access to global traders.
Cover image from ChatGPT, SOLUSD chart from Tradingview
