"Big Players Are Back"...Solana Activates $100 Breakout Scenario on Institutional Fund Inflows

▲ Solana (SOL)

Solana (SOL) is attempting to reclaim its four-month high, buoyed by institutional fund inflows and a surge in derivatives trading. However, short-term prices are facing downward pressure, making the breakout of the $95 resistance level and a stable position above $100 a turning point for its upward trend.

According to Bitcoinist on May 14 (local time), institutional investor interest in Solana has revived this month, fueling bullish expectations. Based on SoSoValue data, Solana ETFs have recorded a total net inflow of $90 million since the beginning of this month. This amount exceeds the net inflow over the past three months. Notably, on May 11, $26 million flowed in, marking the largest daily net inflow since February 25.

The total net assets of Solana ETFs have increased to $1.02 billion, which accounts for approximately 2% of Solana's market capitalization. This inflow of funds pushed Solana's price to around $97, contributing to its four-month high. The market is now watching for the possibility of breaking the psychological resistance level of $100.

Mixed signals appeared in the derivatives market. According to CoinGlass data, the long-short ratio remains below 1, indicating that more traders are holding bearish positions on Solana. Conversely, Solana derivatives trading volume increased by 33% to $12.81 billion, and options trading volume surged by 116% to $37.75 million. Options open interest also rose by 22% to $125 million.

Fundamental factors are also supporting the bullish narrative. Solana's Alpenglow upgrade has been activated in community test clusters and is scheduled for mainnet launch in Q3 this year. Bitcoinist reported that this upgrade is the largest consensus structure change in Solana's history, aiming to increase network speed by 100 times. Western Union also launched its USDPT stablecoin on the Solana network, raising expectations for broader network adoption.

However, external variables remain a burden. Bitcoinist reported that concerns about a resumption of war have grown as US-Iran peace talks appear to be deadlocked, and recent data showing steadily rising inflation due to the Iran war also acts as a bearish factor for cryptocurrency prices. From a technical analysis perspective, crypto researcher Senior analyzed that strong buy signals are appearing for Solana, with immediate resistance at $95. He believes that if Solana breaks this resistance, it could easily rise to $100. At the time of writing, Solana was trading at approximately $90, down over 5% in 24 hours.

*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.*