invezz.com
Solana continues to extend its gains after rallying over the past few days. At the time of writing on Tuesday, SOL is trading above $137, up by more than 7% in the last seven days.
The rally is fueled by institutional demand for SOL as spot exchange-traded funds (ETFs) recorded positive flows of more than $16 million on Monday. The inflow was the largest single-day inflow since mid-December.
In addition to that, on-chain metrics support the current bullish outlook, with further gains expected in the near term.
Institutional demand pushes SOL to $139
Copy link to section
SOL has added more than 1.5% to its value in the last 24 hours and briefly touched the $139 level. The rally comes as institutional demand for Solana ETFs continues to increase.
Spot SOL ETFs were launched on October 28 and have recorded excellent inflows since then.
According to SoSoValue, spot Solana ETFs recorded $16.24 million in inflows on Monday, the highest single-day inflow since mid-December.
Thanks to yesterday’s inflow, the total net assets have now surpassed $1 billion, suggesting rising institutional demand.
If the inflow continues, SOL’s price could rally to a new monthly high.
Solana’s on-chain data shows bullish bias, with spot and futures markets showing large whale orders, cooling conditions, and buy-side dominance.
These conditions suggest a shift to bullish sentiment among traders, which could result in further upward movement of price in the near to medium term.
According to DeFiLlama, SOL’s stablecoin total supply has been recovering since the start of the year and currently stands at $15.32 billion. The growing stablecoin activity and price increase also add another confluence to the bullish bias.
SOL bulls aim to push the price to $150
Copy link to section
Similar to Bitcoin, Ether, and XRP, SOL’s 4-hour chart has switched bullish thanks to the coin’s rally over the past few days. SOL’s price broke above the upper trendline of a falling wedge pattern late last month and has added nearly 12% to its value since then.
At press time, SOL is trading at $137 per coin. If the bullish trend continues, SOL could extend the rally toward the next resistance level at $150.61, its 100-day EMA.
The Relative Strength Index (RSI) on the 4-hour chart reads 70, approaching the overbought level of 80, indicating bullish momentum gaining traction.
Furthermore, the Moving Average Convergence Divergence (MACD) indicator shows a bullish crossover and rising green histogram bars above the neutral level, giving the bulls further confluence.
However, the market could undergo a correction following days of bullish movements. If that happens, SOL could decline towards the nearest support around the weekly level at $126.65.
The next major support level stands at $120, and the bulls could defend this zone in case of a pullback.