Institutional Funds Flood In! Solana ETF Net Inflow Explodes for 7 Consecutive Days

▲ Solana (SOL) ©

Driven by institutional fund inflows and anticipation of network upgrades, Solana is on the verge of breaking past $100, drawing market attention back to the altcoin bull market.

According to the investment media outlet TradingNews on May 13 (local time), Solana (SOL) traded in the range of $90.97 to $95.48, breaking the $90 mark for the first time since May 8. Its rise over the past week reached approximately 10%, bouncing back about 33.8% from its April low of $76. The outlet cited Solana spot ETF inflows, the start of the Alpenglow upgrade test, and progress in Firedancer development as key factors behind this rally.

Institutional fund flows were presented as a key basis for Solana's bullish outlook. According to SoSoValue data, Solana spot ETFs recorded net inflows for 7 consecutive trading days, with $19.07 million flowing in during the most recent day alone. Cumulative net inflows exceeded $1.5 billion. Furthermore, Coinbase, the largest cryptocurrency exchange in the U.S., adding Solana as a collateral asset for USDC-backed loans up to $100,000, was interpreted as a sign of expanding institutional adoption. The outlet analyzed that with ETF approval and collateral asset adoption happening concurrently, Solana is being re-evaluated from a mere speculative asset to an institutional-investable alternative asset.

Technical indicators also support a bullish trend. Solana is currently trading above its 100-day Exponential Moving Average (EMA) of $93.99 and its 50-day EMA of $88.17, and is testing the 'Murrey Math' resistance level at $96.88. The outlet predicted that if it breaks $100 on a daily basis, further upward potential could open up to $103-$106, and then to $108.12 and $111.23. Conversely, it warned that if the $92-$94 support zone collapses, the risk of a correction could increase to $86 and $77.

An improving investor sentiment was also observed in the derivatives market. Solana's futures funding rate turned positive at 0.0041%, meaning the structure has shifted to long position holders paying short position holders. According to CoinGlass, the long/short ratio rose to 1.06, its highest level in the past month. The outlet remarked that the simultaneous occurrence of spot ETF inflows and an expansion of bullish positions in the futures market is a rare phenomenon.

In the long term, the Alpenglow upgrade and Firedancer development were identified as key variables that will strengthen Solana's ecosystem competitiveness. Alpenglow is an upgrade designed to significantly shorten the network's finalization speed, while Firedancer is a project that enhances network stability through validator client diversification. The Solana Foundation also unveiled a roadmap for quantum computer security response. The outlet projected that such technological developments could further strengthen Solana's speed and cost competitiveness compared to Ethereum and other Layer 1 projects.

However, the U.S. Securities and Exchange Commission (SEC)'s mention of Solana as a potentially unregistered security asset remains a risk factor. The outlet pointed out that the outcome of discussions on the U.S. cryptocurrency market structure bill, the CLARITY Act, will be a crucial variable in determining Solana's future regulatory direction. TradingNews assessed that, in the short term, whether Solana breaks past $100 will be a watershed moment for market direction, suggesting further upside potential to the $120 range upon a breakthrough.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*