Solana Stages a Powerful Rebound as Institutional Interest Surges

A remarkable recovery appears to be underway for Solana (SOL), with its price surging more than 10% to break decisively above the key $140 threshold. This upward move coincides with a striking on-chain metric: nearly 80% of all SOL tokens are currently held at a loss, a condition often viewed by market analysts as a potential signal of investor capitulation that can precede significant rallies.

The rally is supported by concrete developments in traditional finance. Cantor Fitzgerald, a major financial institution, has disclosed a substantial position in the Solana ecosystem, holding 58,000 shares of the Volatility Shares Solana ETF (SOLZ) valued at approximately $1.28 million. This investment, while specific in size, underscores a growing trend of established financial firms taking serious notice of Solana.

The landscape for Solana-related investment products has expanded rapidly. Following updated SEC guidelines in September 2025, heavyweight asset managers including Fidelity, VanEck, and Grayscale have launched Solana-focused offerings. By the end of November, these vehicles had attracted nearly $476 million in inflows. A sharp reversal was observed on December 2nd, with Solana ETFs recording net inflows of $45.77 million, a dramatic shift from the $13.55 million in outflows seen just the day before. Notably, even conservative manager Vanguard now provides clients with access to crypto ETFs that include SOL exposure.

Underlying DeFi Strength Provides Foundation

Beyond ETF flows, fundamental on-chain data reveals robust ecosystem health. The Total Value Locked (TVL) within Solana's decentralized finance sector soared by 9.33% in a single day, reaching $9.013 billion. This increase indicates real capital being deployed into smart contracts for yield generation and utility, rather than purely speculative trading.

Should investors sell immediately? Or is it worth buying Solana?

Further strengthening the bullish case, the stablecoin liquidity on the Solana network expanded by over 13% in the past week to $15.181 billion. Analysts frequently interpret such a substantial influx of stablecoins as a leading indicator of purchasing power waiting on the sidelines, poised to enter the market for other assets or yield-bearing protocols.

Technical Analysis Suggests a Potential Reversal

From a chart perspective, Solana is forming what technical traders identify as a "Double Bottom" pattern—a classic reversal formation. The critical neckline for this pattern rests at $145. A sustained breakout above this level would confirm the pattern and likely unlock further upward potential.

Significant hurdles remain on the path higher, however. Key moving averages are positioned to act as resistance, with the 50-day average at $158 and the more formidable 200-day average hovering around $178. Supporting the positive price action, open interest in Solana derivatives markets climbed 6.75% to $7.26 billion. When rising prices are accompanied by increasing capital flowing into futures contracts, it is generally considered a confirmation of a healthy uptrend.

The central question for investors now is whether this marks a brief technical correction or the beginning of a more sustained recovery rally as the year draws to a close.