Key Insights

• Solana’s price correction appears to be nearing its end, with strong support forming around the $176 level.
• Technical analysis shows a possible Wave 5 rally if current support zones hold.
• Institutional inflows have reached a record $311 million in a single week, in a show of rising confidence in SOL.
  
  

Solana is at a crossroads at the time of writing. The cryptocurrency is currently hovering around $184, and has caught the attention of traders and institutions alike. 

On the surface, the token appears to be in a mild correction, but deeper analysis shows that a major trend reversal,  or at least a temporary pause could be in play.

SOL Wave Patterns Point to a Turning Point

Technical analysts, including well-known trader Matthew Dixon, are closely watching Solana’s Elliott Wave structure. According to Dixon, Solana is either completing or already has completed its Wave 4 correction phase. 

This puts the asset at the brink of starting Wave 5, which is a bullish leg that is often associated with fresh momentum.

#SOL MAY have finished the wave 4 correction
OR
We may have further to go in this correction (ideally) to the 100% extension.

IF we reach that level, then personally I will be “grabbing it with both hands” – (but never all in btw)

EXCITING TIMES 🚀 pic.twitter.com/VWd9oEcjKm

— Matthew Dixon – Veteran Financial Trader (@mdtrade) July 29, 2025

For this outlook, there are several support zones to watch. For example, the analyst noted that the 0.618 Fibonacci retracement near $176 has been tested, and the $171 level is acting as a secondary cushion. 

If prices hold above these zones, the path forward becomes more favorable for buyers.

Still, the correction could extend slightly further. The 100% Fibonacci extension sits at around $164, which is a level Dixon considers to be great for fresh entries. 

Meanwhile, any break above $183 could confirm a bullish comeback and set Solana up for a rally toward $194 and beyond.

SOL Price Action and RSI Show Mixed Signals

Despite the technical optimism, the market is still walking on eggshells. Solana has dropped about 4% in the last 24 hours and is down nearly 6% over the past week. The Relative Strength Index (RSI) is showing a bullish divergence on the daily chart, which means that the bullish case is forming but not confirmed.

From a purely price-related standpoint, the $176-$171 range is important for SOL because a strong bounce could attract more buyers. On the other hand, a failure here could drag the token to $164 or lower before a recovery attempt. 

In either case, short-term volatility is likely to shake prices.

Solana Institutional Inflows Break Records

While technical indicators are helpful, big money often tells the real story. Solana just recorded its largest-ever weekly inflow, which is a staggering $311 million across ETFs, ETPs and institutional funds, according to CoinShares. 

This stands as more than triple its previous record.

🚨BREAKING: @Solana‑based digital asset products, including ETPs, funds, and ETFs, attracted $311M in inflows last week. That’s Solana’s largest weekly inflow ever, and three times greater than the previous record. pic.twitter.com/WstXqWdnls

— SolanaFloor (@SolanaFloor) July 28, 2025

This isn’t just a fluke. Solana has seen $551 million in inflows month-to-date, which has dwarfed activity in many other crypto assets including Bitcoin, which saw net outflows during the same period. 

This surge indicates a massive rotation of capital toward SOL and the altcoin market in general.

Overall with all this momentum building, Solana is now challenging a major resistance zone between $190 and $194. This area has acted as a strong barrier in the past, but the rising volumes indicate some growing strength.

Technical analysts point to $210 and $235 as the next liquidity clusters if Solana can break through this current ceiling.

Overall, the market is showing signs of absorbing intraday rejections, which is a signal that buyers are ready to take control if given a strong enough catalyst.