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▲ Solana (SOL)/AI-generated image
Solana (SOL) continues its recovery, bolstered by bullish derivative bets and inflows into spot ETFs. However, with the 100-day and 200-day exponential moving averages still acting as overhead resistance, breaking past $79.27 has emerged as the first hurdle for a short-term rebound.
According to cryptocurrency media outlet FXStreet on July 2 (local time), Solana reached the $78 mark on Thursday, rising nearly 10% this week. Analysis suggests that improved derivative indicators, signs of recovering institutional demand, and technical momentum are converging, raising expectations for further short-term gains.
According to Coinglass data, Solana's long/short ratio recorded 1.11 on Thursday, its highest in over a month. A long/short ratio above 1 indicates more bullish bets than bearish bets. The funding rate also turned positive at 0.0017%. This structure, where long position holders pay short position holders, confirms bullish sentiment.
Institutional demand also showed signs of recovery. According to SoSoValue data, Solana spot ETFs saw an inflow of $521,070 on Wednesday. The cumulative net inflow until Wednesday totaled $3.55 million. FXStreet believes that if this inflow trend strengthens further this week, it could provide additional upward momentum for Solana's price.
The technical trend shows both recovery and pressure simultaneously. Solana remains above its 50-day exponential moving average of $75.43, confirming short-term demand. However, it is below the 100-day exponential moving average of $81.58 and the 200-day exponential moving average of $97.04, indicating lingering mid-to-long-term trend pressure. The Relative Strength Index (RSI) supported upward momentum at 60, and the Moving Average Convergence Divergence (MACD) remained in positive territory.
The overhead resistance levels are, in order: the Fibonacci 50% retracement line at $79.27, the 100-day exponential moving average at $81.58, and the Fibonacci 61.8% retracement line at $83.79. Stronger resistance then lies at the Fibonacci 78.6% retracement line at $90.22, the horizontal resistance line at $96.19, and the 200-day exponential moving average at $97.04. On the downside, $77.07 acts as immediate support, with $75.43 and the Fibonacci 38.2% retracement line at $74.75 forming the second demand zone. If a deeper correction occurs, the Fibonacci 23.6% retracement line at $69.16 is suggested as the next support level.
[Key Article Summary]
-Solana reached the $78 mark on Thursday, rising nearly 10% this week.
-According to Coinglass, the long/short ratio was 1.11, the highest in over a month, and the funding rate turned positive at 0.0017%.
-Solana spot ETFs saw an inflow of $521,070 on Wednesday, but breaking past the $81.58 and $97.04 moving averages is a key factor for further upside.
*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.*
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