Key Insights
- Solana price has jumped to its highest level since January 31.
- The coin has crossed the important resistance level of $97.58.
- Solana ETF inflows have continued rising in the past few months.
Solana price extended its recovery above $100 as renewed ETF demand and stronger onchain activity supported the latest crypto-market rally. SOL traded near $109 on Aug. 27 after gaining more than 12% over 24 hours.
The move pushed Solana above the $97.58 resistance area highlighted on the supplied chart. SOL has also reclaimed its 200-day moving average, strengthening the technical structure after its recovery from this year’s lows.
Spot Solana ETF Inflows are Soaring
American investors are rotating back to the crypto industry as volatility in the stock market escalates. SoSoValue data shows that spot SOL ETFs have continued to add assets this month.
They had over $9.1 million in inflows on Wednesday, bringing the monthly flows to $113 million, a big reversal after the $14.2 million they had last month. These funds have had only one month of outflows since their approval last year.
They have had cumulative inflows of over $1.2 billion since their inception and now have $1.26 billion in assets under management. Bitwise leads in terms of assets, with over $886 million in assets. The other major Solana funds are from companies such as Fidelity, Grayscale, Morgan Stanley, and VanEck.
The same is happening in the staking market, where its staking ratio is hovering around 70%, with over 435 million tokens in staking pools. These investors are earning a reward rate of 5.22%, higher than Ethereum’s 2.60%.
Ongoing staking and ETF inflows are occurring as the crypto market rebounds. Bitcoin has already jumped above $80,000, while the market capitalization of all coins has jumped to over $2.67 trillion. The Crypto Fear and Greed Index has jumped to the extreme greed zone of 80.
Key Solana Metrics are Soaring
Fundamentally, some key Solana metrics are doing well, a sign that its utility is improving. A good example of this is in the decentralized finance (DeFi) industry, where the total value locked (TVL) has jumped to $5.8 billion, its highest level since May last year. It has been in a steady upward trend after bottoming at $4.7 billion a few months ago.
Some of the biggest drivers of this gain are Sanctum, Kamino, Raydium, Jito, and Securitize. Other notable players in Solana’s network are xStocks and Sentora.
The same growth is happening in the stablecoin industry, where the market capitalization of all of them has jumped to over $15 billion. The growth makes it the third-biggest chain in the industry after Ethereum and Tron, which have $147 billion and $93 billion, respectively. Some of the biggest stablecoins in the chain are USD Coin (USDC), Tether (USDT), USDGO, World Liberty Financial’s USD1, and BUIDL.
Solana has also become the biggest chain in the decentralized exchange (DEX) industry. Its protocols handled over $58 billion in volume in the last 30 days, much higher than Ethereum’s $31 billion. It is also much higher than BNB Chain’s $22 billion.
These numbers have driven up its network fees. It made $17.7 million in fees this month, slightly higher than last month’s $15.7 million. This is the third consecutive month of gains.
SOL Price Prediction: Technical Analysis
The daily chart shows that Solana price has rebounded in the past few months. It has jumped from the year-to-date low of $60.2 to the current $106.9. It has already crossed the important 200-day moving average of $89.67, confirming the bullish breakout.
The coin has jumped above the crucial resistance level of $97.58, its highest level in March and May this year. Moving above that level has confirmed the bullish breakout.
The coin’s Relative Strength Index (RSI) has jumped to the extremely overbought level of 85, a sign that its momentum is continuing. Therefore, the token will likely continue rising as bulls target the key resistance level of $150.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
