Can Solana Reach $100? Institutional Funds are a Variable

▲ Solana (SOL) ©

Solana has begun to rebound as retail investor funds pour in again, but the absence of institutional demand appears to be hindering its rise.

According to investment media FXStreet on May 4 (local time), Solana (SOL) is trading above $85, showing an upward trend early in the week amid a market recovery. However, analysis suggests that a cautious approach is needed as the focus of the rise remains on retail investor demand.

Clear buying signals have been observed in the derivatives market. According to Coinglass, Solana futures open interest increased by approximately 4% over 24 hours, reaching $4.98 billion. This indicates that new capital inflow and position building are occurring simultaneously.

Liquidation data also points to a buying dominance. Out of a total of $5.43 million in liquidations, $4.4 million occurred in short positions, confirming a short squeeze (buying pressure resulting from the liquidation or covering of short positions). The funding rate also remained in positive territory at 0.0083%, strengthening the preference for long positions.

However, institutional fund flows are moving in the opposite direction. Solana spot ETFs saw a net outflow of $1.24 million last week, a clear weakening compared to the $9.44 million inflow in the previous week. Weak institutional demand is cited as a factor limiting short-term upward momentum.

Technically, it has reached a critical juncture. Solana is testing resistance near the 50-day exponential moving average of $86.21 and the downtrend line of $86.65. The Relative Strength Index is at 52, indicating a neutral trend, and the Moving Average Convergence Divergence suggests an easing of downward pressure. However, if it fails to break through this resistance, there is a possibility of a retracement to $75.63.

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