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Solana rallies on BSOL ETF debut as bulls test key resistance
Solana (SOL) has regained momentum after a brief pullback, rallying roughly 14% from its Oct. 23 low to an intraday peak of $204.48 before trading near $202.25 at press time. Despite the bounce, SOL still sits about 20% below its September high of $252.78. Rising on-chain and market signals point to growing investor interest as the token eyes a potential return above the $250 zone.
ETF launch and on-chain flows fuel investor demand
The immediate catalyst behind the uptick is the launch of Bitwise’s Solana spot ETF, listed on NYSE Arca under the ticker BSOL on Oct. 28. The product offers direct SOL exposure with built-in staking functionality, an uncommon feature for spot ETPs that could make institutional allocation and passive exposure more attractive.
Trading data shows daily volume climbed 5.4% to more than $6.38 billion, pushing Solana’s market capitalization above $111 billion. Exchange flow metrics also reflected the excitement: Coinglass data flagged nearly $1 billion worth of SOL withdrawn from exchanges over the past 48 hours, a classic sign of accumulation off-exchange.
Solana price is testing the upper trendline of a falling channel pattern — Oct. 28
Institutional buy-in strengthens bullish narrative
Institutional adoption is another tailwind. On Oct. 27, Nasdaq-listed Reliance Global Group disclosed an allocation to Solana in its digital asset treasury, joining established holdings in Bitcoin and Ethereum. Public company accumulation can act as proof of concept for corporate treasuries considering exposure to altcoins, and it strengthens Solana’s case as an institutional-grade blockchain asset.
Technical outlook: breakout targets and risk levels
On the daily chart, SOL is attempting a bullish breakout from a two-month falling channel defined by lower highs and lower lows. The key resistance to watch is the 61.8% Fibonacci retracement at $204.98, which coincides with the neckline of a developing double-bottom pattern. A convincing close above this area would increase the probability of a sustained rally.
A decisive breakout past $205 could clear the way to the 78.6% retracement at $226.38 and potentially target the September peak of $252.78, representing an upside of roughly 23% from current levels.
Momentum indicators currently favor buyers. The MACD recently produced a bullish crossover against its signal line, suggesting momentum is shifting higher. Meanwhile, the RSI has printed a bullish divergence, indicating that buying pressure has been building even as prices dipped.
Solana RSI has formed a bullish divergence — Oct. 28
Support levels and downside scenarios
If the rally stalls, important support sits at the 50% Fibonacci retracement near $189.94. A breakdown below that level would increase the likelihood of a deeper pullback toward $174.91, where buyers have historically stepped in. Traders should monitor volume on any breakout or breakdown: high-volume breakouts are more likely to sustain.
What this means for investors and traders
The BSOL ETF launch expands access to Solana for institutional investors and passive funds, while staking functionality could channel long-term holder demand. Short-term traders can watch the $205 zone for confirmation of a breakout, while longer-term investors should assess capital exposure in the context of portfolio allocation, risk tolerance, and macro liquidity conditions.
Risks remain: crypto market volatility, potential macro headwinds, or technical rejection at the 61.8% level could quickly reverse gains. Nonetheless, the combination of ETF-driven flows, exchange outflows, and improving technical momentum gives Solana a credible shot at testing and potentially reclaiming the $250 area if market conditions remain supportive.
Overall, SOL’s path back above $250 is plausible but not guaranteed. Traders should use clear risk management, watch institutional inflows, on-chain transfer activity, and confirm breakouts with volume and momentum indicators before assuming a sustained trend reversal.
Source: crypto
Comments
coinpilot
Wow, BSOL launch actually moved the needle… 1bn off exchanges, staking in an ETF? wild. SOL to 250 maybe, but still watch volume, folks
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