Solana (SOL), unprecedented ETF inflow..."Major rally if it surpasses $120 mark"

▲ Solana (SOL)/ChatGPT generated image

Solana (SOL) is preparing for a new major bullish rally, driven by an unprecedented weekly inflow of spot exchange-traded fund (ETF) capital and a breakout above its Relative Strength Index (RSI) downtrend line for the first time in three years.

The cryptocurrency podcast "The Lark Davis Show" analyzed in its episode on October 1st (local time) that the scale of institutional funds flowing into Solana has reached an explosive level, overwhelmingly surpassing Bitcoin's (BTC) inflow ratio relative to its total market cap. Last week, approximately $188 million flowed into Solana spot ETFs. This amounts to about 0.27% of its total market capitalization of $70 billion. Converted to Bitcoin's market cap, this is equivalent to a massive $5 billion inflow in just one week.

On-chain ecosystem indicators and decentralized exchange (DEX) trading volumes also demonstrate rapid growth. Solana's weekly decentralized exchange trading volume recorded $19.84 billion, establishing it as the dominant #1 chain, surpassing Robinhood, Ethereum Mainnet, Binance Smart Chain (BNB Chain), and Base. Stablecoin supply also hit an all-time high of $17.3 billion, while the tokenized stock and real-world asset (RWA) ecosystem size reached $4.6 billion, and the number of tokenized asset holders exceeded 1 million.

Its exclusive power in the artificial intelligence (AI) agent payment market is also cited as a key positive factor supporting price increases. Solana processes 76% of agentic transactions, demonstrating overwhelming ecosystem dominance. This is thanks to the Alpenglow upgrade, which accelerated the finality speed 85 times from 12 seconds to 0.15 seconds, enabling ultra-micro-payments between agents.

From a technical analysis perspective, the significance of the $120 level is being re-evaluated. After officially breaking through the monthly RSI downtrend line, which had lasted for three years, on August 17th, the current $120 range is a critical inflection point that has repeatedly acted as both support and resistance in the past. The presenter assessed that Solana has established itself as a kingpin, leading new trust-based capital flows beyond the rigid accounting methods of traditional finance.

[Article Key Summary]

-Solana spot ETFs saw an inflow of $188 million, 0.27% of its weekly market cap, demonstrating explosive buying pressure.

-Weekly decentralized exchange trading volume recorded $19.84 billion and captured 76% of AI agent transactions.

-The break above the three-year downtrend line and the successful establishment of the $120 resistance level are considered key turning points for a future rally.

*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.*