Solana’s SOL is one of the best performers among the top 10 cryptocurrencies by market cap, up nearly 7% since Sunday.
The coin has crossed the $90 mark after rallying 13% the previous week.
Institutional and retail demand for Solana holds strong, evidenced by rising inflows and Open Interest.
Furthermore, the technical outlook remains bullish, with the buyers looking to push SOL’s price above the $100 psychological level.
ETF inflows support SOL’s rally
Solana continued where it left off last week after adding nearly 7% to its value to now trade at $93 per coin.
The rally comes as Solana-focused Exchange Traded Funds (ETFs) recorded a $7.60 million inflow on Friday, pushing its weekly netflow to $10.70 million.
The consistent ETF inflows show strong institutional demand, which could help increase the upward pressure.
Furthermore, the retail interest in Solana is catching up with the institutional confidence.
According to CoinGlass, SOL’s futures Open Interest (OI) is up by more than 6% over the last 24 hours, reaching $5.73 billion, suggesting a significant buildup of fresh or higher leveraged positions.
The growing inflows into the Solana futures market have wiped out millions of dollars worth of short leveraged positions.
Solana’s liquidation data shows a wipeout of bearish positions.
Solana futures recorded $15.50 million of liquidations since Sunday, led by $14.43 million of short liquidations, reflecting the unwinding of mainly bearish positions.
SOL bulls look to push price above $100
The SOL/USD daily chart is bearish and efficient despite the ongoing rally. The coin is trading at $93 and could rally higher as bulls look to continue the ongoing recovery.
Currently, SOL is trading at a February 5 open price of $92.11, which acts as an upper ceiling of a consolidation range.
Meanwhile, the February 5 close price at $78.35 serves as the bottom support.
The bulls are eyeing an immediate breakout above the descending 50-day Exponential Moving Average (EMA) at $94.17.
If the daily candle closes above this level, SOL could extend its rally towards the higher target at the 100-day EMA at $109.58.
The inducement liquidity (ILQ) on the daily chart at $107 could also serve as a short-term target.
The Moving Average Convergence Divergence (MACD) enters positive territory, indicating a growing bullish momentum.
The Relative Strength Index (RSI) at 59 rises above the midline, reinforcing a near-term bullish bias.
However, if Solana fails to close the daily candle above the 50-day EMA, it could experience a reversal within the consolidation range, testing the $78.35 base floor.
While the broader crypto market has largely ignored the rising tensions between the United States and Iran in recent days, unfolding events could also affect SOL and other major coins.
The rising inflows into spot crypto ETFs suggest that institutions now view cryptocurrencies as a hedge against inflation.
The post Is Solana the next crypto to break $100 after ETF demand? appeared first on Invezz
