Solana hovers at $84... Potential to re-enter $100 if $89 is breached

▲ Solana (SOL) ©

Despite a short-term correction, Solana's ability to break through $89 has emerged as a key turning point due to ETF fund inflows, increased derivative demand, and expanded cross-chain liquidity.

According to investment media outlet TradingNews on April 27 (local time), Solana (SOL) traded around $84.24, down approximately 2.94% over a 24-hour period. During the same period, the price moved between $83.83 and $88.01, with a 24-hour trading volume of $4.18 billion and a market capitalization of $48.51 billion.

Technically, Solana continues to trade within a range between $80 and $90. The upper resistance of a symmetrical triangle pattern is located near $89, and if breached, the psychological resistance level of $100 and the 200-day exponential moving average of $113 are cited as the next targets. Conversely, if the Ichimoku Cloud base line at $83.72 breaks, the risk of a correction increases to $80, and potentially deeper to the $75 support level.

In terms of supply and demand, institutional fund inflows are continuing. Solana spot ETFs recorded a net inflow of $9.44 million over the past week, maintaining a positive flow for two consecutive weeks following a $35.17 million inflow the previous week. In the derivatives market, Solana futures open interest increased by more than 2% in 24 hours to $5.23 billion, and the funding rate rose to 0.0095%, indicating an increase in long position building.

However, DeFi security risks remain a concern. Hacks related to KelpDAO and LayerZero caused losses estimated between $190 million and $293 million, and Aave reportedly has potential bad debt ranging from $124 million to $195 million. In response, the Solana Foundation provided USDT loans to support Aave, and the integration of Aave tokens into Solana is also being pursued, raising expectations for cross-chain collaboration.

TradingNews also noted that assets worth $70 million moved from other chains to Solana over the past week. This indicates that liquidity is flowing into the Solana network despite security concerns. Analysts suggest that Solana-based stablecoin yields, low transaction costs, and high processing speeds are attracting both institutional and retail investors.

Ultimately, Solana's short-term direction depends on whether it breaks through $89. If it surpasses $89 with significant trading volume, scenarios for recovering $100 and $113 open up. However, a fall below $80 increases the likelihood of retesting $75. The media suggests a mid-term target range of $113 to $150, while also pointing out that Bitcoin's breakthrough of $80,000 and this week's central bank events are key variables for Solana's rebound.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*