Solana Price Prediction: ETF Inflows Resume As SOL Bounces Inside Falling Wedge

Source: CoinEdition Original Title: Solana Price Prediction: ETF Inflows Resume As SOL Bounces Inside Falling Wedge Original Link: Solana price today trades near $128.18 after bouncing 2% from the falling wedge lower boundary. The recovery comes as both ETF and spot flows turn positive, providing a bid beneath price after Monday’s liquidation-driven selloff.

ETF And Spot Flows Align Bullish

Institutional and retail buyers stepped in during the dip. SoSoValue data shows Solana spot ETFs recorded $3.08 million in net inflows on January 20, reversing the $2.22 million outflow from January 16.

Total ETF assets under management stand at $1.07 billion with cumulative inflows reaching $866.88 million since launch. The steady accumulation reflects institutional appetite for SOL exposure despite the 12% drawdown in ETF prices over the past week.

Spot exchange flows confirm the accumulation thesis. Coinglass recorded $9.31 million in net inflows on January 21, meaning coins are moving off exchanges into private wallets. When both ETF and spot flows turn positive simultaneously, it typically signals that buyers view current prices as attractive entry points.

Seeker Airdrop Adds Ecosystem Catalyst

Solana Mobile launched its Seeker token airdrop today, distributing nearly 2 billion SKR tokens to 100,908 users and 141 developers. The allocation represents 20% of total token supply and ties directly to the second-generation Seeker phone.

The airdrop rewards early adopters and builds ecosystem engagement around Solana’s mobile hardware strategy. While token distributions can create near-term selling pressure, they also drive user acquisition and developer interest that supports long-term network value.

The timing provides a fundamental catalyst as price tests technical support. Ecosystem developments often matter more than short-term price action for assets with strong network effects.

Falling Wedge Structure Remains Intact

On the daily chart, Solana continues to trade inside a falling wedge that has contained price since the September high near $250. Monday’s selloff tested the lower boundary near $124 before buyers stepped in.

The pattern is technically bullish, with converging trendlines that typically resolve with upside breakouts. However, price remains below all four EMAs, reflecting the damage from the broader correction.

Key levels now:

• Immediate resistance: $135.52 (20 EMA)
• Secondary resistance: $137.09 (50 EMA)
• SAR resistance: $146.54
• Major resistance: $147.37 (100 EMA)
• Wedge support: $124 to $125
• Breakdown target: $110

The Parabolic SAR sits at $146.54, nearly $20 above current price. Reclaiming this level would flip the indicator bullish and signal that momentum has shifted back toward buyers.

Intraday Recovery Shows Stabilization

Shorter timeframes reveal the bounce dynamics. On the 30-minute chart, price found support at $124 during the Monday crash before recovering above the VWAP cluster near $127.

RSI has climbed back to 56.62 after hitting oversold extremes below 20 during the selloff. The recovery suggests that selling pressure has exhausted itself at current levels, at least temporarily.

Price now consolidates between $126 and $130. A break above $130 with volume would confirm the bounce and target the 20 EMA at $135. Failure to hold $126 reopens the path toward retesting $124 support.

Outlook: Will The Wedge Hold?

The setup offers a defined risk-reward. The falling wedge lower boundary provides a clear level to trade against, while ETF and spot inflows suggest that buyers are willing to defend it.

Bullish case: Price holds above $124 and reclaims $135. A daily close above the 20 EMA targets the 50 EMA at $137 and eventually the wedge upper boundary near $150.

Bearish case: A close below $124 breaks wedge support and targets $110. Losing $110 exposes the next major demand zone near $100.

Solana sits at the lower edge of a multi-month compression pattern. Flow data supports accumulation, but bulls need a close above the EMA cluster to confirm that the correction has ended.