Solana’s 740% Buying Pressure Surge: What’s Cooking in the Crypto Cauldron?

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Ah, Solana! The dear chap is experiencing a bit of a wobble, with its price pulling back like a shy debutante at her first ball. A cheeky little 2% day-on-day dip has waltzed in, coinciding with the filing of a new Solana-focused ETF-talk about timing! Nevertheless, our friend SOL is still prancing around with an 8% gain for the week, putting many of its larger cousins to shame in this capricious crypto ballroom.

Beneath this polite veneer, however, one can observe a delightful game of musical chairs, with positioning shifting in ways that suggest stability rather than chaos. Quite the plot twist, don’t you think?

Morgan Stanley Throws Its Hat in the ETF Ring as Solana Strikes a Pose

The recent filing by Morgan Stanley on January 6, 2026, adds a new chapter to Solana’s intriguing tale. While the price may not have reacted with the fervor of a dog at a squirrel convention, Solana is consolidating near a major bullish pattern, much like a cat ready to pounce at the sound of a can opener.

On the daily chart, Solana continues to fashion an inverse head and shoulders structure-a pattern that often indicates a potential leap into the stratosphere once confirmed. The left shoulder made its grand entrance in late November, the head popped up in mid-December, and now the right shoulder is making its debut as prices take a slight bow from recent highs.

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Now, even if Solana decides to dip another 8% to 10%, it would still be nestled comfortably within the left-shoulder zone. For the time being, $121 appears to be a delightful support zone for a bounce, much like a good armchair after a long day.

A clean break above the neckline could unveil a charming 24% upside from the breakout level. Hence, the bullish structure remains as sturdy as ever.

Capital Flow Remains Rosy as Speculative Supply Packs Its Bags

Our capital flow data plays the role of the reliable butler, supporting the notion that this pullback is under control. Chaikin Money Flow, which keeps track of whether capital is entering or exiting the premises, has been trending higher since early November-quite the feat, I must say.

Even when Solana decided to take a leisurely stroll downwards, our dear CMF kept rising. Most importantly, it remains above the zero line, signaling net large inflows. During the latest dip, CMF did not roll over like a lazy dog, proving that capital has stayed engaged-no sulking in the corner for this one!

Simultaneously, speculative supply is clearly slipping away, as evidenced by the HODL Waves metric. Wallets holding Solana for a mere day to a week have reduced their share of supply from about 6.0% to 3.9% between December 24 and January 7-a rather impressive 35% reduction, even as Solana gained nearly 8% over the same period. Bravo!

Another short-term group, those whimsical holders from one month to three months, also trimmed their exposure. Their share fell from 21.57% to 19.95%, a drop of roughly 7.5%. One might say they are playing it safe, like a cautious chap at a high-stakes poker table.

This is significant because speculative selling typically puts pressure on prices. Yet, this time, prices are holding steady, indicating that the sell pressure is being absorbed, much like a sponge soaking up spilled tea.

Buying Pressure Takes a Staggering 740% Leap as Strong Hands Embrace Supply

This absorption is perfectly illustrated in the holder net position data, which tracks the positions of our long-term investors. Since December 24, buying pressure has skyrocketed-one might even say it has jumped higher than a kangaroo on a trampoline!

Net position change leapt from roughly 189,000 SOL to about 1.59 million SOL by January 7, representing a jaw-dropping 740% increase in net buying pressure in less than two weeks. January 7 witnessed the largest inflow, right after the ETF product made its grand debut-what timing!

This surge explains why Solana has dodged a more profound pullback despite the visible profit-taking from short-term traders-like a nimble dancer sidestepping a rogue foot! It also aligns beautifully with the steady rise in CMF, confirming that capital is flowing in, not out. A splendid state of affairs!

Looking ahead, price levels will dictate the next act. Solana needs to maintain its poise above $133 to keep the structure stable. Pullbacks towards $130 still fit the right-shoulder formation. Even a move toward $121 wouldn’t invalidate the pattern-how accommodating!

For upside confirmation, Solana must reclaim $143. A daily close above that level would confirm the breakout and set the stage for a gallant journey towards $178. What a thrilling prospect!

With speculative supply dwindling, buying pressure soaring, and capital flow remaining positively buoyant, Solana’s pullback looks healthier than a well-fed cat. The next move hinges on whether the SOL price can transform that positioning into a neckline break-a tantalizing cliffhanger indeed!

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2026-01-08 23:42