Solana Rallies Amid Network Inflow Surge, but Technical Hurdles Remain
Solana (SOL) is currently trading around $130, marking a nearly 3% increase in its price over the past 24 hours. This upward momentum is
Quick overview
- Solana (SOL) is trading around $130, experiencing a nearly 3% increase due to over $120 million in liquidity influx from competing blockchains.
- The network has regained its position as the top DEX by trading volume, surpassing Ethereum scaling solutions by over 50%.
- Institutional interest is growing with the launch of Canada's first Solana ETF, which offers direct access to SOL coins.
- Technical indicators suggest that Solana must maintain a critical support level at $120 to avoid potential bearish trends.
Live SOL/USD Chart
Solana (SOL) is currently trading around $130, marking a nearly 3% increase in its price over the past 24 hours. This upward momentum is fueled by a significant influx of over $120 million in liquidity to the Solana network from competing blockchains, signaling renewed investor confidence. However, technical analysis suggests that SOL/USD may face challenges in sustaining these gains in the short term.
Blockchain Migration Shows Strong Ethereum-to-Solana Movement
Crypto investors have bridged around $120 million in liquidity to Solana from other blockchains over the last thirty days. With $41.5 million Ethereum dominated this exodus; Arbitrum followed with $37.3 million. Among other noteworthy contributors are Sonic ($6.6 million), BNB Chain ($14 million), and Base ($16 million).
This turnaround is especially noteworthy in light of the LIBRA memecoin debate involving President Javier Milei of Argentina, which had set off $485 million in outflows from Solana to other platforms including Ethereum and Binance Chain.
With POPCAT, FARTCOIN, BONK, and WIF showing seven-day gains of 79%, 51%, 25%, and 21%, respectively, the comeback of liquidity coincides with amazing rallies in Solana-based memecoins. This memecoin comeback has piqued curiosity in the larger Solana ecology once more.
DEX Dominance Strengthens Solana’s Position Against L2 Competitors
With a total value locked (TVL) of $6.9 billion Solana has confirmed its second-largest blockchain position. More remarkably, with $15.8 billion in weekly trading volume, the network has recaptured the top rank in distributed exchange (DEX) activity surpassing the total volume of Ethereum scaling solutions by more than 50%.
Significant expansion across several Solana DeFi platforms has been the engine of this accomplishment. DEX volumes have skyrocket; Pump-fun saw a 44% rise while Raydium saw 28% increase over the past week. Traditional DeFi systems have also grown rather well; Synatra, a yield aggregator, notes a 43% TVL gain over the same time.
Institutional Interest Grows with First Canadian Solana ETFs
CI Global Asset Management’s introduction of Canada’s first Solana ETF in association with Galaxy Asset Management gave institutional adoption some impetus. With a 0% management fee for the first three months, the ETF—trading under tickers SOLX.B and SOLX.U—offers direct access to SOL coins.
To create extra yield for investors, the fund will also engage in staking operations. Emphasizing the blockchain’s rising institutional relevance, Jennifer Sinopoli, Executive Vice-President of CI GAM, said “Solana has become one of the core blockchain networks driving innovation and change.”
SOL/USD Technical Indicators: Uphill Battle Despite Positive Momentum
Solana’s technical view shows contradictory indications even with favorable liquidity patterns. On the daily chart, the SOL token price stays in a bearish trend; price action must break above $147 to verify a positive turnaround.
Technical experts examining the asset’s performance said, “SOL must exhibit a bullish break of structure by closing a daily candle above $147 for a bullish trend change.”
Still potent resistance points are the $140 level and the 50-day exponential moving average. Reduced timeframe analysis suggests a worrying bearish divergence between price and RSI, a trend that has historically predicted corrections in Solana’s price over 2025.
While on-chain data from Glassnode suggests notable buyer accumulation near $130, with over 32 million SOL (5%) bought at this level in recent days, short-term support rests around the demand zone between $115 and $108.
Solana Outlook: Critical Support Level at $120 Could Determine Next Trend
While Solana negotiates present market conditions, traders find that $120 is a critical support level needed to sustain positive momentum. This pricing point shows the annual volume point of control (POC), so most of SOL’s trading volume falls between $120 and $125.
While momentum indicators like RSI rising above its 14-day simple moving average and the MACD in positive area indicate increasing bullish momentum, recent price movement shows SOL breaking above its declining channel pattern.
Macroeconomic headwinds might still throw off efforts at recovery, economists warn, though. Maintaining the $120 support might set off a retest of $100 or maybe cause prices to reach new lows, therefore confirming ongoing bearish market conditions.
Solana will need consistent increase in network activity to support higher valuations in the next months; fee generating in April is already just $22 million, much below January’s peak of over $400 million.
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