Will Solana Successfully Defend $80? The Reason for Unease Despite Institutional Fund Inflows

▲ Solana (SOL) ©

As Solana (SOL) attempts to hold above the $80 mark, institutional fund inflows and expectations for the growth of Real World Asset (RWA) tokenization are supporting the market's bottom. However, despite signs of recovering retail investor buying interest, short-term downward pressure continues to weigh on the market.

According to investment media FXStreet on June 1 (local time), Solana continues to trade sideways above $80 amidst recent market corrections. The outlet analyzed that $115.34 million flowed into Solana spot ETFs last month, indicating a resurgence in institutional demand. Simultaneously, as the market size for Solana-based Real World Asset (RWA) tokenization expands, long-term fundamental expectations are also growing.

According to SoSoValue data, Solana spot ETFs have recorded net inflows for four consecutive weeks recently. Last week alone saw an inflow of $2.36 million, and monthly net inflow trends have continued since its launch in October last year. In contrast, Bitcoin spot ETFs have experienced outflows of over $1 billion for three consecutive weeks, suggesting a shift of institutional funds to some altcoins. The outlet analyzed that institutional investors are increasing their holdings in major altcoins like Solana rather than Bitcoin.

Solana's presence is also growing in the Real World Asset (RWA) tokenization market. Currently, Solana is ranked as the third-largest RWA network, following Ethereum and BNB Chain, based on $2.74 billion worth of tokenized assets. The outlet evaluated that growth based on real-world usage and institutional fund inflows could serve as key factors supporting Solana's price in the long term.

Retail investor demand also shows some signs of recovery. According to CoinGlass data, SOL's Open Interest (OI) has maintained at approximately $5.37 billion over the past 24 hours, with a positive funding rate of 0.0093%. This indicates that long-position investors are paying a premium, expecting potential price increases in the future. However, total liquidations during the same period amounted to $4.02 million, with long-position liquidations accounting for $3.24 million, suggesting that a sell-side dominant trend still persists.

Technically, whether Solana can hold the $80 support level has emerged as a key variable. Solana is currently trading below its 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) of $86.16 to $108.14, maintaining a short-term bearish structure. The daily chart's Relative Strength Index (RSI) was stable above the oversold zone at 41, and while the Moving Average Convergence Divergence (MACD) remained in negative territory, it also showed signs of slowing downward momentum. The outlet predicts that if SOL breaks above $83.50 on a daily basis, it could open the possibility of testing resistance at $86 and $91. Conversely, if it falls below $80, a retest of support levels at $75.63 and $67.50 is also mentioned.

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