Has Solana (SOL) shown signs of a rebound? ETF fund outflow remains a variable despite improved on-chain metrics

▲ Solana (SOL) ©

Solana (SOL) is attempting a rebound, driven by improved on-chain metrics and investor sentiment in the derivatives market. However, an analysis suggests that the upward trend may be limited as fund outflows from Solana spot ETFs continue, indicating that institutional investor demand has not yet recovered.

According to investment specialized media FXStreet on June 29 (local time), Solana has continued its recovery, trading above $71 after a slight decline last week. While improved investor sentiment in the derivatives market and on-chain activity are fueling expectations of a rebound, a net outflow of $3.8 million from Solana spot ETFs last week remains a burden on institutional fund flows.

Investor sentiment in the derivatives market appears to be improving. According to Coinglass, Solana's funding rate turned positive last week and recorded 0.0073% on the 29th. This structure, where long position holders pay fees to short position holders, suggests that the market is leaning towards an upward trend. The long-short ratio also exceeded 1 at 1.06, indicating a dominant bullish sentiment. On-chain metrics are also positive. Solana surpassed Hyperliquid (HYPE) and Ethereum (ETH) in application revenue, recording $2.17 million daily, $19.01 million weekly, and $85.50 million monthly. FXStreet evaluated this as a sign of high user activity and economic vitality in the Solana ecosystem.

However, institutional investor demand has not yet recovered. According to SoSoValue data, a net outflow of $3.8 million occurred from Solana spot ETFs last week. The media predicted that if these outflows continue this week, Solana's price could face another correction.

Technically, the possibility of a rebound is not yet confirmed. Solana remains below its 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) of $75.14, $81.97, and $97.36, respectively, maintaining a bearish structure in the medium term. The Relative Strength Index (RSI) is neutral around 50, and the Moving Average Convergence Divergence (MACD) showed slight improvement, suggesting a slowdown in the downtrend. FXStreet analyzed that $74.75 is the first resistance level, and a breakthrough could open up further upside potential towards $79.27 and $81.98. Conversely, on the downside, $69.16 is the first support level, followed by $60.13 as a key support zone.

*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.*