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▲ Solana (SOL) ©
Solana (SOL) entered a consolidation phase at a key resistance level after surging over 14% last week. However, with funds flowing back into US Solana spot ETFs and improvements in on-chain and derivatives indicators, analysis suggests that the upward trend remains valid.
According to investment media FXStreet on July 6 (local time), Solana experienced a slight correction near $80.89 after rising over 14% last week. Although the price is facing resistance near the 100-day exponential moving average (EMA) of $81.63, the derivatives market and on-chain indicators continue to support a bullish trend.
Institutional investors' buying activity also showed signs of recovery. US Solana spot ETFs recorded a net inflow of $5.75 million last week, according to SoSoValue. This marks a shift from a net outflow of $1.81 million in the previous week to a net inflow. The media analyzed that if these inflows continue this week, the likelihood of further price increases for Solana could grow.
On-chain activity is also positive. Solana announced via its official X account that the spot trading volume of tokenized assets in Q2 reached $5.7 billion, more than double the $2.69 billion recorded in Q1. This was interpreted as a sign of network expansion, increased institutional adoption, and growing on-chain demand. Furthermore, CryptoQuant data also indicated a continued moderate bullish sentiment, with large orders from whale investors observed in a neutral market environment.
The derivatives market also supported the bullish trend. Solana futures open interest increased to $5.8 billion last Saturday, reaching its highest level since mid-May, and maintained around $5.58 billion on Monday. An increase in open interest signifies expanded market participation, and according to CoinGlass, the funding rate also recorded a positive 0.0081%, indicating a continued preference for long positions. Technically, the price is holding above the 50-day EMA of $76.41 and the 50% Fibonacci retracement level of $79.27, while the Relative Strength Index (RSI) is in the low 60s and the Moving Average Convergence Divergence (MACD) maintains a bullish signal, suggesting that upward momentum is still alive.
However, in the short term, the 100-day EMA at $81.63 and the 61.8% Fibonacci retracement level at $83.78 are key resistance levels. The media predicted that if these levels are broken on a daily closing basis, there could be room for further ascent to $90.21, followed by $96.19 and the 200-day EMA at $96.73. Conversely, if the support levels of $79.27, $77.06, and $76.41 are broken, the correction could extend to $74.75, $69.16, and $60.13.
*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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