Key Insights
- Solana price has jumped and formed a golden cross pattern.
- SOL ETF inflows have jumped in the past few weeks.
- Solana’s total value locked in the DeFi industry is rising.
Solana price made a strong bullish breakout in August, driven by the broader crypto market rally and the ongoing exchange-traded fund (ETF) inflows. SOL token soared to a high of $110, up sharply from the year-to-date low of $60. This rebound may continue in the foreseeable future as some major catalysts align.
Solana Price Technicals Points to More Upside
The daily timeframe chart reveals that the SOL token has rebounded in the past few months and is now hovering at its highest level since January this year. This rally may continue in the foreseeable future. It recently jumped above the important resistance level of $98.10, its highest point since May 11.
Solana has already formed a golden cross pattern as the 50-day and 200-day Weighted Moving Averages (WMA) crossed each other. The token has moved to the 23.6% Fibonacci Retracement level, while the MACD indicator has moved above the zero line.
SOL price has formed an inverted head-and-shoulders pattern, another common bullish reversal pattern. Therefore, the path of the least resistance for the token is at $133, the 38.2% Fibonacci Retracement level. This target is about 30% above the current level.
The main risk, however, is if the token drops below the important support level of $98. Such a move would point to more downside in the coming days or weeks.
Solana ETF Inflows are Jumping
In addition to its strong technicals, Solana also has some notable bullish catalysts ahead. One of them is the fact that American investors are continuing their accumulation phase.
These funds added over $925k in assets on Monday, with most of them moving to Fidelity’s FSOL ETF. These funds added $193 million in inflows in August, the biggest monthly increase since November last year.
In total, the funds have had over $1.34 billion in inflows since their approval and now hold over $1.44 billion in assets under management (AUM). The biggest Solana ETFs are by companies like Bitwise, Fidelity, Grayscale, Morgan Stanley, and VanEck. Rising ETF inflows are a sign that investors are embracing the token as they expect more upside over time.
The same trend is happening in the staking industry, where the staking ratio has jumped and is now nearing the 70% mark. This means that nearly 70% of all SOL tokens in circulation are staked, and many stakers tend to hold them for a long time. There are now over 473 million staked SOL tokens.
Solana Open Interest is Soaring
The ongoing Solana ETF inflows has coincided with the soaring futures open interest. Its daily futures open interest has been in a strong uptrend in the past few days, and has reached its highest level in months.
It moved to a high of $6.63 billion, a sign that demand from investors continues to rise. It bottomed at over $4.50 billion in July this year. This is happening as the amount of liquidations has dropped, while the weighted funding rate has remained in the green in the past few months.
More fundamental metrics are bullish on Solana. For example, DeFi Llama data shows that the total value locked (TVL) in the ecosystem has jumped to $5.84 billion, the highest level since March 30. This surge is being led by top protocols in the ecosystem, such as Sanctum, Jupiter, Kamino, and Jito.
At the same time the amount of stablecoins in Solana’s ecosystem has continued soaring and currently stands at $16 billion. The DEX volume has jumped and is much higher than that of other chains like Ethereum and BSC Chain.
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.
