Solana (SOL) Buyers Struggle to Lift Prices Above $160 Resistance Level Despite Strong Inflows

Like Bitcoin, Ethereum, and other top altcoins, Solana remains under immense selling pressure. While bulls struggle for momentum, $160 is emerging as a local resistance level

Solana remains under immense selling pressure, as do Bitcoin, Ethereum, and other top altcoins. While bulls are struggling to gain momentum, $160 is emerging as a local resistance level that traders should watch.

Despite the positive momentum in September, Solana buyers were unable to push prices past this benchmark. Currently, there is a local double top, although one analyst on social media noted that Solana outperformed other platforms by posting a sharp net inflow.

Over the past three months, Solana received more than $800 million in net flows. This capital injection is more than double what OP Mainnet, an Ethereum layer-2, received and far surpasses what Sui, another scalable blockchain, registered in the same period. It also exceeds the inflows of Ethereum’s popular layer-2s, Base and Starknet, as well as Avalanche and the BNB Chain.

Interestingly, during this period, Arbitrum, an Ethereum layer-2 and the largest among them, Linea, Blast, and Bitcoin saw outflows. Despite being the largest smart contracts platform, Ethereum experienced significant outflows nearing $800 million.

It remains unclear what could have triggered the outflows in Ethereum while driving capital to Solana. Differences in on-chain fees may be a factor, but the continuous sale of ETH in Q3 2024 likely contributed to the outflow. Currently, ETH is down 35% from its Q3 2024 highs, whereas Solana has fallen just 25% from its July highs when it peaked at around $192 before retreating.

Even as Solana attracts capital, the coin remains under intense selling pressure. Breaking the local resistance at $160 convincingly is crucial for the uptrend observed in the second half of 2023 to continue. Further gains could see Solana ascend to as high as $190 and possibly break out from the current range.

However, potential headwinds remain. If Bitcoin fails to recover, it could drag the altcoin markets, including Solana, downward. Additionally, there are concerns that the upcoming FTX token distribution will negatively impact SOL prices. According to Token Unlocks, the team plans to release tokens on December 26, 2024, with over 66,000 SOL being distributed daily for a year.

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