Solana hovers at $84... possibility of re-entering $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, driven by ETF fund inflows, derivatives demand, and expanding cross-chain liquidity.

According to investment media TradingNews on April 27 (local time), Solana (SOL) was trading around $84.24, down approximately 2.94% over 24 hours. 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, a price range between $80 and $90 continues. Around $89, there is an upper resistance of a symmetrical triangle pattern; if breached, the psychological resistance of $100 and the 200-day exponential moving average of $113 are cited as the next targets. Conversely, if the Ichimoku Cloud baseline of $83.72 breaks, the risk of a correction to $80, and potentially deeper to the $75 support level, increases.

In terms of supply and demand, institutional capital inflows continue. Solana spot ETFs recorded a net inflow of $9.44 million over the past week, maintaining a positive trend for two consecutive weeks following a $35.17 million inflow the previous week. In the derivatives market, Solana futures open interest increased by over 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 are a concern. Hacks related to KelpDAO and LayerZero resulted in losses estimated between $190 million and $293 million, and Aave reportedly has potential bad debt ranging from $124 million to $195 million. In this process, 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 cooperation.

TradingNews also highlighted that $70 million worth of assets moved from other chains to Solana in the past week. This indicates that liquidity is flowing into the Solana network despite security concerns. Furthermore, the analysis suggests that Solana-based stablecoin yields, low transaction costs, and high processing speed are attractive to both institutional and individual investors.

Ultimately, Solana's short-term direction hinges on whether it breaks through $89. If it surpasses $89 with significant trading volume, a recovery scenario to $100 and $113 opens up; however, if it falls below $80, the possibility of retesting $75 increases. The media suggested a mid-term target range of $113 to $150, while also pointing out that Bitcoin's breach 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. The content should be interpreted for informational purposes only.*