Solana’s price pushed decisively above the $140 mark on Tuesday, signaling a shift in market structure as bullish momentum strengthened. According to Deadline, an analyst’s analysis shows the move reflects a confirmed breakout on the daily chart, ending a prolonged corrective phase.
Breakout Confirms Trend Shift Above Key Resistance
Significantly, Solana reclaimed the $140 level after weeks of sideways trading near cycle lows. Analysis cited by Deadline report that price action broke a descending trendline, which previously capped upside attempts. Hence, buyers now appear to control the short-term structure.
The next technical objective sits near $170, aligning with the 0.618 Fibonacci retracement. Additionally, analysts view $200 as a major psychological barrier if momentum holds.
Beyond that level, extension models project a potential move toward $260 under strong market conditions. However, analysts stress that continuation depends on sustained demand and broader crypto market stability.
Source: CoinCodex
According to CoinCodex data as of press time, Solana traded around $139, posting a 4.09% daily gain. Moreover, the token recorded above 12% increase over the past week. With roughly 560 million SOL in circulation, its market capitalization now stands near $78 billion.
ETF Inflows Strengthen Institutional Narrative
Besides technical strength, institutional activity continues to support Solana’s outlook. Data from Coinglass showed steady net inflows into Solana spot ETFs on January 5. Total inflows reached 125.33K SOL, reflecting sustained interest from asset managers.
Bitwise led flows with 93.25K SOL, followed by Fidelity at 14.92K SOL. Grayscale added 13.43K SOL, while VanEck contributed 3.73K SOL. Consequently, analysts argue that ETF demand reinforces the breakout’s credibility.
Morgan Stanley Filing Adds Long-Term Catalyst
Additionally, regulatory filings introduced a longer-term catalyst for Solana. Morgan Stanley submitted an S-1 registration to the U.S. Securities and Exchange Commission for a Solana Trust. The proposed product aims to track SOL’s price while incorporating staking to generate yield.
The filing also outlines plans for in-kind creation and redemption, a structure favored by institutional investors. Moreover, Morgan Stanley filed separate paperwork for a Bitcoin Trust, signaling broader engagement with digital assets. However, the firm has not yet disclosed custodial partners or listing venues.
