Solana’s bullish technical setup is strengthening after SOL reclaimed the $96–$97 area and used it as support, putting the next upside objective near $120 into focus. After an August recovery from the mid-$70s, SOL broke through horizontal resistance around $96.49 and held the subsequent retest, signaling that former resistance is beginning to act as new support. On Aug. 28, Solana traded near $104–$106 after reaching an intraday high of $110, while a confirmed break above $110 would expose the 38.2% Fibonacci retracement at $114.88 and potentially extend the rally toward $127.83.
US spot Solana exchange-traded funds have provided important demand support. The funds extended their inflow streak to five sessions through Aug. 24, attracting $33.5 million in their largest daily intake of 2026 and lifting cumulative net subscriptions to about $1.22 billion. Later data pointed to a seven-session streak and cumulative inflows near $1.26 billion, though some reported figures related to single-day trading volume for Bitwise’s BSOL fund rather than net inflows. Growing ETF demand gives US investors regulated SOL exposure and can strengthen spot-market buying when issuers acquire the underlying asset to create new shares.
The rebound developed despite hotter-than-expected US inflation data. The headline Personal Consumption Expenditures price index rose 3.7% annually in July, above the 3.6% consensus estimate, while core PCE increased 0.2% monthly and 3.3% annually. That initially lifted bond yields and the dollar as traders trimmed expectations for easier Federal Reserve policy, but SOL recovered quickly after a brief dip to $95.23 as spot demand absorbed the de-risking.
Network activity has added another layer of support. Solana processed more than 1.01 billion transactions during one week in August, and tokenized-equity trading continued to expand. Solana handled $1.298 billion of the $1.324 billion in global onchain equity volume during the week of June 15–21, roughly 95% of the market. First-half tokenized-stock volume reached a reported $4.9 billion, compared with $775 million in the second half of 2025.
Longer term, a weekly chart fractal projects a conditional move above $1,000 if SOL can eventually break out of a broad descending structure. That scenario remains dependent on a convincing break above the upper boundary of the current range. The Double Disinflation proposal from Helius could also support the supply outlook by raising the annual inflation decline rate from 15% to 30%, potentially moving Solana toward its 1.5% terminal inflation rate by the first half of 2029, though that remains subject to approval.
Key levels to watch are $104.41 as initial support and $110 as immediate resistance. A loss of $104.41 could pull SOL toward $100.95 or the 61.8% Fibonacci level at $93.95. The broader setup remains bullish while price holds above $100–$104, but stretched momentum and nearby overhead liquidity around $108.50–$111.50 leave the token vulnerable to a deeper reset before a move toward $114.88 or $127.83.
