Hassan Maishera
TL;DR
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Solana is attempting to extend its recovery, trading above $72 as bullish derivatives sentiment strengthens.
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Positive funding rates and a long-to-short ratio above 1 indicate growing confidence among futures traders.
Solana (SOL) is showing signs of recovery after a modest decline last week, with the cryptocurrency trading above $72 on Monday. Improving sentiment in the derivatives market and strong on-chain fundamentals are supporting the rebound, although persistent outflows from spot Solana exchange-traded funds (ETFs) continue to raise concerns about institutional demand.
While technical indicators suggest bearish momentum is fading, SOL still faces several resistance levels before a stronger uptrend can be confirmed.
Derivatives Market Turns Bullish
Sentiment in Solana's derivatives market has improved in recent days, pointing to growing optimism among traders.
According to CoinGlass, Solana's funding rate turned positive last Thursday and stood at 0.0073% on Monday. Positive funding rates indicate that traders holding long positions are paying those with short positions, a sign that the market is leaning bullish.
The long-to-short ratio has also climbed to 1.06, moving above the neutral level of one. A ratio above one suggests that more traders are positioning for additional price gains rather than further downside.
Together, these metrics indicate improving confidence in Solana's near-term price outlook.
Beyond derivatives, Solana's on-chain activity remains one of its strongest fundamentals.
Recent blockchain data shows Solana generated the highest application revenue across all major networks, outperforming competitors such as Hyperliquid and Ethereum.
The network produced approximately:
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$2.17 million in daily application revenue.
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$19.01 million over the past week.
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$85.5 million during the last month.
Consistently leading the industry in application revenue suggests that Solana continues to attract active users and developers while maintaining strong economic activity across its ecosystem.
The healthy network usage strengthens the long-term investment case for SOL despite recent market volatility.
ETF Outflows Highlight Weak Institutional Demand
Despite improving retail and derivatives sentiment, institutional investors remain cautious.
According to CoinGlass, spot Solana ETFs recorded $3.8 million in net outflows during the previous week.
Continued withdrawals from investment products could limit Solana's recovery if institutional participation fails to return.
Persistent ETF outflows often reflect weaker demand from professional investors and may place additional selling pressure on the asset.
Market participants will be watching this week's ETF flow data closely to determine whether institutional sentiment begins to improve.
Technical Analysis: Key Resistance Levels Still Ahead
At the time of writing, Solana is trading around $71.82, extending its rebound from recent lows.
However, the cryptocurrency continues to trade below several important moving averages:
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50-day EMA: $75.14
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100-day EMA: $81.97
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200-day EMA: $97.36
Remaining below these longer-term trend indicators suggests that the broader market structure remains cautious despite recent gains.
Momentum indicators offer mixed signals. The Relative Strength Index (RSI) is hovering near the neutral 50 level, indicating balanced buying and selling pressure, while the Moving Average Convergence Divergence (MACD) has turned positive, hinting that bullish momentum is gradually strengthening.
If buyers maintain control, Solana could encounter resistance at several important technical levels:
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$74.75 — 38.2% Fibonacci retracement.
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$75.14 — 50-day EMA.
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$77.07 — Horizontal resistance.
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$79.27 — 50% Fibonacci retracement.
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$81.98 — 100-day EMA.
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$83.79 — Next major upside target.
On the downside, immediate support is located around $69.16, corresponding to the 23.6% Fibonacci retracement level.
If selling pressure increases, the next major support sits near $60.13, which marks the recent cycle low and remains a critical level for maintaining Solana's broader recovery outlook.
While improving derivatives sentiment and strong network fundamentals favor further gains, sustained ETF inflows and a breakout above key resistance levels will likely be needed to confirm a stronger bullish trend.
