Solana Price Forecast - SOL-USD Hits $142 as Bank of America Crypto Endorsement Boost Institutional Demand

Solana Price Forecast - SOL-USD Hits $142 as Bank of America Crypto Endorsement Boost Institutional Demand

After weeks of volatility, Solana (SOL-USD) reclaims the $140 level amid $650 million in total ETF inflows | That's TradingNEWS

TradingNEWS Archive 12/3/2025 9:09:00 PM
Crypto SOL/USD SOL USD

Solana Price Forecast - (SOL-USD) Rebounds Toward $145 as ETF Inflows Hit $650 Million and Market Volatility Tightens Technical Range

Solana (SOL-USD) continues to draw intense institutional attention after rebounding above $142, gaining 12.31% in 24 hours and erasing the earlier week’s losses that took it as low as $123. The rally followed a broad crypto market resurgence, with Bitcoin (BTC-USD) reclaiming the $90,000 level and Ethereum (ETH-USD) breaking above $3,000, signaling renewed appetite across digital assets. Solana now trades around $141.36, up 1.85%, ranking as one of the top-performing altcoins among the major market-cap leaders.

ETF Inflows Reinforce Institutional Confidence in Solana

The return of institutional capital has been decisive in Solana’s rebound. Its ETF products attracted $45.77 million in net inflows on December 3, lifting cumulative inflows to $650 million — a stark reversal from the $13.55 million outflow recorded just a day earlier. Data from SoSoValue confirms that Solana has now recorded 21 consecutive days of net inflows, one of the longest streaks for any crypto-linked ETF since October 2025.

This momentum gained additional strength after Vanguard, the world’s second-largest asset manager, reversed its prior stance and announced that its 8 million brokerage clients can now trade regulated crypto ETFs, including Solana, XRP, Bitcoin, and Ethereum. This policy shift has effectively integrated Solana into mainstream investment channels, aligning it with institutional-grade exposure and potentially expanding liquidity depth across global markets.

At the same time, Solana ETF demand stands in sharp contrast to outflows from leading competitors. Bitcoin ETFs lost over $3 billion, while Ethereum products saw withdrawals exceeding $1 billion during the same period, according to Farside Investors. The divergence in flows underscores how Solana is emerging as the favored institutional hedge in a post-halving, multi-chain landscape.

Technical Framework: Support, Resistance, and Momentum Dynamics

From a technical perspective, SOL-USD faces immediate resistance around $144–$145, a level tested multiple times since November 20. A breakout above this threshold would confirm a double-bottom reversal pattern, opening a path toward $160, followed by a medium-term resistance target at $170, and potentially $200 if momentum accelerates.

The 50-day Exponential Moving Average (EMA) sits near $145, serving as the first major barrier, while the 100-day EMA at $135 forms solid intermediate support. A failure to sustain above $140 could lead to a retracement toward $128–$120, which remains the next key buying zone for market participants.

The Relative Strength Index (RSI) on the daily chart has climbed to 48.20, moving out of oversold conditions and confirming a neutral momentum bias. Meanwhile, the Moving Average Convergence Divergence (MACD) is gradually turning positive, indicating that bearish pressure has weakened and that buyers are regaining control.

Market Sentiment and Macro Flows: A Broader Risk-On Revival

Solana’s rebound coincides with improving global sentiment toward risk assets. The Bank of America’s recommendation for wealth managers to allocate up to 4% of portfolios to Bitcoin and Vanguard’s ETF inclusion catalyzed broad inflows across crypto markets. This dual policy shift effectively revalidated digital assets as a legitimate institutional allocation class.

Additionally, the easing of macroeconomic uncertainty — with U.S. inflation stabilizing at 2.4% Core PCE and Treasury yields declining — has revived demand for high-beta crypto assets. Solana’s high throughput and network efficiency make it a natural target for speculative reallocation during these periods of risk-on rotation.

Comparative Capital Rotation and Market Divergence

Despite the positive flows, Solana still trades 43% below its September peak near $250, showing that recovery remains incomplete. The asset’s market cap stands around $74 billion, supported by $5 billion in 24-hour trading volume. Institutional rotation remains visible: as capital exits Ethereum’s L2 sector, investors increasingly favor Solana’s parallelized transaction engine, which processes up to 65,000 transactions per second (TPS) with significantly lower costs.

This efficiency advantage explains why ETF issuers, including 21Shares and Franklin Templeton, are prioritizing Solana exposure in their crypto baskets. The demand from ETFs contrasts with Ethereum’s stagnation, suggesting a potential long-term rebalancing of institutional weightings within smart contract assets.

Derivative and Options Market Dynamics

On the derivatives front, Solana open interest surged 22% week-over-week, while funding rates on perpetual futures stabilized near 0.01%, indicating balanced long and short positioning. The options skew shifted bullish, with traders pricing in a 30% probability of SOL above $160 by mid-December, up from 18% last week.

These dynamics suggest growing conviction that Solana (SOL-USD) will sustain its current uptrend, provided that liquidity remains firm. Institutional traders appear to be using ETFs and futures simultaneously — building delta-neutral strategies that generate yield while positioning for potential upside.

Emerging Competition: Bitcoin Hyper (HYPER) and Layer-2 Innovation

While Solana solidifies its reputation as the fastest major Layer-1 blockchain, the emergence of Bitcoin Hyper (HYPER) highlights how innovation around the Solana Virtual Machine (SVM) is expanding Solana’s technological influence. Bitcoin Hyper integrates the SVM directly into Bitcoin’s Layer-2 architecture, combining Solana-level performance with Bitcoin’s base-layer security.

The presale for Bitcoin Hyper has already raised $28.9 million, with over 635 million tokens sold and staking rewards of 40% APY. This reflects growing institutional appetite for Solana-compatible infrastructure, which broadens the ecosystem’s reach even beyond its native blockchain.

Institutional and Retail Participation in ETFs: Volume Leadership

Since the launch of SOL ETFs in late October, total institutional inflows now exceed $650 million, outpacing all competitors outside Bitcoin. Retail participation also surged after Vanguard and Franklin Templeton opened access to crypto ETF trading for millions of self-directed investors.

The correlation between ETF inflows and spot price action has tightened — every $100 million net inflow historically translates to an average $8.50 rise in Solana’s price over the following five days. If current trends persist, Solana could test $160–$165 before year-end.

Medium-Term Outlook: Volatility Ahead, But Momentum Intact

Although Solana remains volatile, the combination of institutional inflows, ETF integration, and supportive technicals suggests continued upward bias. Failure to hold above $135 would risk short-term retracement, but the broader structure remains constructive.

With ETF volume dominance, a clear upturn in momentum indicators, and macro tailwinds, Solana’s position as the fastest-growing Layer-1 asset by institutional exposure is now established. The key short-term range remains between $135 and $145, with breakout potential toward $170–$200 as liquidity conditions improve.

Final Market Stance on SOL-USD

Given the data, Solana (SOL-USD) is rated Buy, supported by sustained ETF inflows, technical breakout potential, and clear institutional validation. While volatility persists, price action between $140 and $145 serves as accumulation territory for medium-term investors targeting a retest of $200. The combination of capital inflow velocity, ETF adoption, and ecosystem expansion positions Solana as a top institutional performer heading into Q1 2026.

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