Is Solana's Rebound Starting? Is ETF Fund Inflow a Bottom Signal?

▲ Solana (SOL) ©

Although Solana has fallen below the $80 mark, expectations for a rebound are emerging as spot ETF fund inflows and an improved sentiment in the derivatives market appear simultaneously.

According to the investment media outlet FXStreet on May 20 (local time), Solana (SOL) has continued its downward trend after last week's correction and is trading below $85. However, the media analyzed that US-listed Solana spot ETFs have seen net inflows for two consecutive days this week, and derivatives market indicators are also showing a gradual improvement.

According to SoSoValue data, Solana spot ETFs recorded a net inflow of $3.78 million in a single day on the 20th. The previous day also saw an inflow of $2.06 million, continuing the positive trend for two consecutive days. The media explained that if the stable fund inflow trend, which has continued since early May, is maintained, the possibility of SOL price recovery could increase.

The sentiment in the derivatives market is also showing signs of improvement. According to CoinGlass, Solana's funding rate turned positive on the 20th and rose to 0.0063% on the 21st. This structure, where long-position investors pay fees to short-position investors, indicates that some bullish sentiment is reviving in the market. Solana's long-short ratio has also rebounded to 0.99, attempting to recover to a neutral zone. If this ratio exceeds 1, it is interpreted as a signal that the market has shifted to a bullish betting advantage.

CryptoQuant data also diagnosed that the spot and futures markets are stabilizing without overheating. However, bearish pressure still dominates the technical trend. SOL is currently trading around $84.04, remaining below the 23.6% Fibonacci retracement level of $86.67 and the 50-day EMA of $87.64. The RSI remains at 41, and the Moving Average Convergence Divergence (MACD) also continues its downward trend.

The media suggested $86.67-$87.64 as a short-term resistance zone. It analyzed that if this zone is not breached, selling pressure is likely to continue with each rebound attempt. Conversely, if the 100-day EMA of $92.96 is stably recovered, further upward potential could open up to the $97.89-$98.53 range.

*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.*