Key Takeaways:
Solana’s SOL token held steady around the $87 mark on April 27, consolidating above a key technical level as traders weighed fresh institutional interest from Western Union against a narrowing price range.
"SOL is currently confined within a compressed Bollinger Band corridor on the 3-day chart, spanning from $77 to $94," crypto analyst Ali Martinez said in a recent note. He characterized the region as a “no-trade zone,” advising traders to wait for a definitive breakout.
The token traded in a tight range between $87 and $88, just above its 50-day Exponential Moving Average at $87.04, according to CoinGecko data as of 18:00 UTC. While trading volume declined over 23 percent during the consolidation, derivatives markets showed a bullish bias. Open interest in SOL futures climbed more than 2 percent in 24 hours to reach $5.23 billion, with funding rates hitting 0.0095 percent, Coinglass data shows, indicating traders are paying a premium for long exposure.
The flat price action comes as Western Union confirmed it will launch its USDPT stablecoin on Solana next month, a move that could bring a significant portion of its 4.5 billion annual transactions on-chain. A decisive price move above the $94 resistance level could clear a path toward the $100 psychological barrier, while a drop below the $83 support zone could signal further downside.
The technical setup for Solana on the daily chart shows a symmetrical triangle formation with resistance near $89. A breakout above this level is needed to sustain upward momentum. The Relative Strength Index (RSI) climbed to 55, above the neutral 50 mark, suggesting buying pressure is building.
This consolidation follows a period of significant institutional developments for the Solana ecosystem. Western Union’s choice to build its settlement layer on Solana, citing its ability to process thousands of transactions per second for fees under one cent, adds to a series of institutional validations. The move follows the listing of a Solana-inclusive ETF by GSR on Nasdaq and a report that Goldman Sachs holds a stake of nearly $108 million in the asset.
Solana-focused exchange-traded funds have continued to attract capital, pulling in $9.44 million in net weekly inflows. This contributed to a five-day streak of positive net inflows that have now accumulated to approximately $1.45 billion.
In other ecosystem news, the Solana Foundation recently lent an undisclosed amount of USDT to the DeFi protocol Aave on Ethereum to help provide liquidity following a $190 million exploit related to misconfigured infrastructure.
Looking ahead, traders are watching the $94 resistance level identified by Martinez. A sustained break above that could trigger a rally toward the 200-day EMA at $113. Conversely, a failure to hold the current support around $87 could see the price test the lower band of the consolidation range near $77.
This article is for informational purposes only and does not constitute investment advice.
