Solana Price Forms a Bull Flag: Why $110 Is the Real Test
Solana’s sharp recovery has compressed into a declining range, creating a bull-flag setup whose credibility now depends on $98 support and a clean move through $110.
SOL Has Formed a Flag, Not Confirmed One
SOL climbed from the mid-$70s to an August high near $110, a move of roughly 45%. It has since held above the former breakout area while making lower highs beneath a descending trendline. That is the structure traders describe as a bull flag: a sharp advance followed by a contained pullback.
For now, the chart shows compression after a rally, not a confirmed continuation move.
- What confirmation looks like: A trendline break above $105 is the first signal. SOL must then close above $110 and hold that former high as support.
Three levels define the setup
$98-$100: The base of the flag. A daily loss would weaken the continuation structure.
$103-$105: The falling trendline and first breakout area.
$110: August’s high and the level where buyers need to absorb renewed selling.
Why $110 Matters More Than the Trendline
A break through $103-$105 would remove the immediate trendline. $110 is the harder test because it is where the August rally failed and where sellers are most likely to return.
A recent Solana analysis identified $105 as a weekly resistance cluster and $134 as the next larger barrier. A full measured move would point closer to $135-$140, depending on the breakout point. That is a chart projection rather than a forecast, and closer resistances would need to be cleared first.
A daily close below the $98-$100 base would invalidate the immediate bull-flag structure and return attention to the next retracement area near $91-$92, identified in SOL’s earlier August structure.
Futures Dominate Reported SOL Turnover
According to data from CoinGlass, futures turnover reached $9.46 billion over 24 hours, compared with about $997 million in spot volume. That means SOL futures volume was roughly 9.49 times larger than spot volume.
That ratio is not a measure of new money entering SOL. Futures contracts also serve hedging and arbitrage, and the same contract can trade several times. It does, however, leave SOL more exposed to rapid moves caused by leveraged positioning when price reaches support or resistance.
Aggregate open interest has fallen from the $7.14 billion recorded on August 30, while SOL has declined from about $107 to $103. Because open interest fell much more than the token price, the data suggests a reduction in outstanding exposure beyond the effect of SOL’s price decline. It cannot show whether that reduction came mainly from longs or shorts.
The next breakout attempt should be read through that lens. A move above $105 and $110 that is supported by stronger spot turnover would carry more weight than one driven mainly by a fresh build-up in futures contracts. Our earlier analysis of SOL’s leverage near $110 explains exactly why that difference matters.
Stablecoin Supply Adds Capacity, Not a Buy Signal
DefiLlama placed stablecoin supply on Solana at $16 billion, up nearly $490 million, or 3%, over seven days. USDC represented about 43% of the total.
The increase gives the network a larger pool of dollar-denominated assets that could be used for trading, collateral or liquidity provision. It does not show that the capital is being deployed into SOL. Stablecoins can remain in wallets, lending markets or liquidity pools without becoming direct buying pressure.
A sustained breakout needs stronger spot buying, not only futures activity. A rise in SOL trading alongside the stablecoin balance would provide more convincing evidence that onchain liquidity is participating in the move.
The Breakout Needs the Right Kind of Demand
The chart now gives buyers a clear job: turn a move above $110 into accepted support rather than another brief test of August’s high.
The next move matters less than its composition. A breakout led by spot demand and accepted above $110 would support the continuation case; a leverage-heavy push that quickly loses $98-$100 would show that the consolidation was not a bull flag after all.
Disclaimer: This article is for informational purposes only and does not constitute investment, financial or trading advice. Cryptocurrency markets and leveraged derivatives involve substantial risk.
Alex is Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
