"Big Players Are Back"...Solana Activates $100 Breakthrough Scenario with Institutional Fund Inflow

▲ Solana (SOL)

Solana (SOL) is attempting to reclaim a four-month high, bolstered by institutional fund inflows and a surge in derivatives trading. However, short-term prices are under downward pressure, making the breakthrough of the $95 resistance level and a stable settlement above $100 a turning point for the upward trend.

According to Bitcoinist on May 14 (local time), Solana is fueling bullish expectations as institutional investor interest has revived this month. According to SoSoValue data, Solana ETFs have recorded a total net inflow of $90 million since the beginning of this month. This surpasses the net inflow volume of the past three months. Notably, on May 11, $26 million flowed in, marking the largest daily net inflow since February 25.

The total net assets of Solana ETFs have increased to $1.02 billion, which accounts for approximately 2% of Solana's market capitalization. This inflow of funds pushed Solana's price up to approximately $97, contributing to the formation of a four-month high. The market is now focusing on the possibility of breaking through the psychological resistance level of $100.

Mixed signals have emerged in the derivatives market. According to CoinGlass data, the long/short ratio currently remains below 1, indicating that more traders are holding bearish positions on Solana. On the other hand, Solana derivatives trading volume increased by 33% to reach $12.81 billion, and options trading volume surged by 116% to $37.75 million. Options open interest also rose by 22% to $125 million.

Fundamental factors are also bolstering the bullish argument. Solana's Alpenglow upgrade has been activated in the community test cluster, with a mainnet launch scheduled for Q3 this year. Bitcoinist reported that this upgrade is the biggest consensus structure change in Solana's history, aiming to increase network speed by 100 times. Western Union also launched its USDPT stablecoin on the Solana network, raising expectations for broader network adoption.

However, external variables remain a burden. Bitcoinist reported that concerns about a resumption of war have grown as US-Iran peace talks appear to be deadlocked, and recent data showing steadily rising inflation due to the impact of the Iran war is also acting as a bearish factor for cryptocurrency prices. From a technical analysis perspective, crypto researcher Senior analyzed that strong buy signals are appearing for Solana, with immediate resistance at $95. He believes that if Solana breaks through this resistance, it could easily rise to $100. As of the time of writing, Solana was trading at approximately $90, having fallen more than 5% over 24 hours.

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