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▲ Solana (SOL)/AI-generated image ©
Solana (SOL) has set a new record of 7 consecutive days of capital inflows, backed by overwhelming support from institutional investors, laying the groundwork for a full-fledged price rally.
According to investment media FXStreet on May 13 (local time), Solana (SOL) successfully rebounded near the key technical support level of $94 on Wednesday, stimulating market optimism. SoSoValue data revealed that Solana spot ETFs recorded net inflows of $26.57 million on Monday, followed by $19.07 million on Tuesday. This marks a 7-day consecutive net inflow streak since May 4, suggesting that strong institutional spot demand is ensuring market downside rigidity.
Indicators in the derivatives market are also rapidly tilting towards a bullish trend. Solana's funding rate turned positive on Tuesday and then surged to 0.0041% on Wednesday, demonstrating the dominance of long positions betting on an increase. According to CoinGlass data, Solana's long-short ratio reached 1.06, close to its highest in the past month. This indicates that more traders are building aggressive buy positions, anticipating future price increases.
From a technical analysis perspective, Solana is currently trading around $95.30, stably holding above its 100-day Exponential Moving Average (EMA) of $93.99 and its 50-day EMA of $88.17. Notably, the upward breakout of the previous parallel channel's upper boundary at $92.11 is interpreted as a significant signal indicating a shift in market sentiment from consolidation to recovery. The Relative Strength Index (RSI) stands at 65, maintaining healthy upward momentum without being overbought, and the Moving Average Convergence Divergence (MACD) also records a positive value above the 0-line, supporting this trend.
In case of further ascent, the primary resistance level is formed at the Fibonacci 38.2% retracement point of $98.53. If this zone is breached, the rally is likely to extend to $108.12 and the $111.23 line, where the 200-day EMA is concentrated. Finally, it is expected to attempt to enter the strong horizontal resistance zone between $117.71 and $120.00. Conversely, on the downside, the 100-day EMA at $93.99 and the channel's upper boundary at $92.11 are expected to act as primary defense lines.
In conclusion, Solana has entered an attractive investment phase by capturing both continuous institutional capital inflows and improved market sentiment. Experts predict that if the current buying momentum accelerates, Solana's position as a leader driving the altcoin market's rebound will be further solidified. However, the possibility of intraday corrections due to macroeconomic volatility remains, requiring a cautious approach that continuously monitors the support of the 50-day EMA at $88.16.
*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*
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