Solana has pulled back to around $118 after a two-week surge of more than 22%, as traders weigh whether institutional demand and network growth can sustain the uptrend. The token slipped to $118.36 on Monday, a modest decline that has not erased the recent gains.
The pause comes after a period of strong momentum, with spot Solana ETFs recording their second-highest weekly inflow since launch. According to SoSoValue, these funds attracted $188.22 million last week, extending a 13-week streak of positive flows that began in early June.
That sustained inflow suggests investors continue to add exposure through regulated products, even as prices have climbed. For traders, the current pullback offers a test: if ETF demand holds, it could help absorb selling pressure; a slowdown might make it harder for SOL to break through resistance.
ETF flows are just one indicator. They show how much capital entered the funds, but they do not guarantee an immediate or lasting price rise. This week's data will be more telling if it confirms that demand remained firm after the rally.
Solana also highlighted fresh milestones in areas tied to network usage. In a Monday post, the network said stablecoin supply reached an all-time high of $17.3 billion. Stablecoins provide dollar-denominated liquidity for transfers and trading, and a larger supply can give users more funds to deploy, though it does not measure how actively those tokens are used.
The network also reported that its real-world asset (RWA) ecosystem surpassed $4.6 billion across over 3,000 assets, with more than 1 million holders of tokenized equities. These figures suggest Solana is gaining ground as a venue for onchain assets, strengthening the broader demand narrative even if short-term volatility remains.
On the daily chart, SOL is trading above its 50-day exponential moving average (EMA) at $101.81, as well as the 100-day and 200-day EMAs at $93.94 and $94.65. That keeps the technical picture constructive despite Monday's dip. The relative strength index is near 63, indicating positive momentum without being overbought, and the moving average convergence divergence histogram remains positive.
The key upside level to watch is $123.96. A daily close above that resistance would signal that the advance can resume. On the downside, the 50-day EMA near $101.81 is the first support, followed by $96.19 and the cluster of longer-term averages around $93 to $95. Deeper support lies near $81.96 and $77.07.
For now, the pullback looks modest relative to the recent gains. The next test is whether ETF demand holds while SOL challenges the $123.96 barrier.
This article is for informational purposes only and does not constitute financial advice.
