Institutional Money Pours In! Solana ETF Sees Explosive Net Inflows for 7 Consecutive Days

▲ Solana (SOL) ©

Solana is on the verge of breaking $100, driven by institutional fund inflows and anticipation for network upgrades, shifting market attention back to the altcoin bull market.

According to investment media TradingNews on May 13 (local time), Solana (SOL) traded in the range of $90.97-$95.48, breaking the $90 mark for the first time since May 8. Its rise over the past week reached approximately 10%, rebounding by about 33.8% from its April low of $76. The media cited Solana spot ETF inflows, the start of Alpenglow upgrade testing, and progress in Firedancer development as key factors behind this surge.

Institutional fund flow was presented as a key basis for Solana's bullish outlook. According to SoSoValue data, Solana spot ETFs recorded net inflows for 7 consecutive trading days, with $19.07 million flowing in just in the last day. The cumulative net inflow has exceeded $1.5 billion. Furthermore, Coinbase, the largest cryptocurrency exchange in the U.S., adding Solana as a collateral asset for USDC-backed loans up to $100,000, was interpreted as a sign of expanding institutional adoption. The media analyzed that with simultaneous ETF approval and collateral asset adoption, Solana is being re-evaluated from a mere speculative asset to an alternative asset suitable for institutional investment.

Technical trends also support the bullish sentiment. Solana is currently trading above its 100-day Exponential Moving Average (EMA) of $93.99 and its 50-day EMA of $88.17, and is testing the 'Murrey Math' resistance level at $96.88. The media diagnosed that if it breaks $100 on a daily closing basis, further upside potential could open up to $103-$106, and subsequently to $108.12 and $111.23. Conversely, it warned that if the $92-$94 support zone collapses, the risk of a correction to $86 and $77 could increase.

An improving investor sentiment was also observed in the derivatives market. Solana's futures funding rate turned positive at 0.0041%, meaning the structure has shifted to long position holders paying short position holders. According to CoinGlass, the long/short ratio rose to 1.06, its highest level in the past month. The media assessed that the simultaneous occurrence of spot ETF inflows and an expansion of bullish positions in the futures market is a rare phenomenon.

In the long term, the Alpenglow upgrade and Firedancer development were identified as key variables to strengthen Solana's ecosystem competitiveness. Alpenglow is an upgrade aimed at significantly shortening network finality, and Firedancer is a project to enhance network stability through diversification of validation clients. The Solana Foundation also unveiled a roadmap for quantum computer security response. The media projected that such technological developments could further enhance Solana's speed and cost competitiveness compared to Ethereum and other Layer 1 projects.

However, the U.S. Securities and Exchange Commission (SEC)'s mention of Solana as a potential unregistered security asset was still cited as a risk factor. The media pointed out that the outcome of discussions on the U.S. cryptocurrency market structure bill, the CLARITY Act, will be a key variable in determining Solana's future regulatory direction. TradingNews assessed that in the short term, whether Solana breaks $100 will be a watershed moment determining market direction, suggesting further upside potential to the $120 range upon a breakthrough.

*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.*