The price of Solana shows a breakout potential of 12% as key signals are strengthened.

Solana (SOL) continues to draw attention this week as it enters December with a cautious sentiment. The price of SOL is currently fluctuating around the $126 level, recording a fall of 31% over the past 30 days. Nevertheless, technical indicators have shown signals suggesting that buyers may soon return to the market, opening up the possibility of a recovery if Solana surpasses key price levels.

Positive technical signals

From November 17 to December 1, the price of SOL established a new low, while the RSI indicator formed a higher low. This is a sign that selling pressure is gradually weakening, which often occurs before recoveries or reversals when market conditions are favorable.

Solana price analysis | Source: TradingViewFurthermore, the CMF indicator – reflecting large cash flows – has also been continuously increasing and approaching the trendline, reinforcing expectations for the return of institutional investors. If the CMF breaks through the trendline, the buying pressure will be confirmed more clearly.

Solana (SOL) witnessed a large capital inflow | Source: TradingView## Long-term momentum from support levels

An expert on platform X has pointed out that the price of SOL is approaching the support line that has previously helped the market to rise sharply from 2023 until now.

This is a price zone that has proven effective many times, and if the overall market improves, the recovery potential remains intact.

The Role of ETFs and Network Operations

Despite a weakening market, Solana's spot ETFs have maintained a stable inflow of funds for five consecutive weeks, with a total value exceeding $605 million. Many investors believe that ETFs are the key factor keeping the price of SOL steady above $120, while also laying the foundation for a quick recovery when the market stabilizes again. Additionally, Solana has recorded activity from new application projects, network operations, and meme projects, contributing to maintaining its draw attention even as prices fall.

Important price levels to watch

To confirm the recovery trend, SOL needs to close above the level of $141 – this is the level that has halted all upward movements since November 21. If surpassed, the next targets will be $173 and $187, which are areas that were previously rejected.

Price prediction for Solana | Source: TradingViewConversely, if the price of SOL falls below $121, the risk of establishing a new bottom will arise, while also breaking the positive signals from RSI and CMF, threatening the long-term trend.

Conclusion

The price of Solana is currently being influenced by the strong ETF cash flow and the weak general market trend. Although reversal setups have appeared on the charts, investors should only shift to a positive outlook when SOL surpasses the $141 mark. Until then, caution remains the preferred choice.

Mr. Teacher