Solana (SOL) Eyes Rally to $120 as ETFs Book 10-Week Streak of Positive Inflows
Over the past 30 days, Solana (SOL) has seen a significant increase of 44% in its value, with bulls successfully defending the $100 psychological support level in recent days. Despite macroeconomic woes, demand for the token remains resilient, as evident from the substantial trading volumes.
Trading volumes have jumped by 64% in the past 24 hours, with the token bouncing strongly off the $100 threshold. This level of activity accounts for nearly 6% of the asset's circulating market cap, with a total value of $3.5 billion.
Market Sentiment and Rate Hike Odds
Following a brief drop to 50%, the odds of a rate hike in September by the Federal Reserve jumped back to 58% last week, after a better-than-expected jobs report in the United States. However, the ongoing dispute between the White House and the country's central bank seems to be getting heated, with President Donald Trump pressuring the Fed to lower rates during the next FOMC meeting.
Despite this ongoing dispute, the market has opted to push crypto prices higher, with Solana (SOL) leading the charge. Other altcoins, such as Zcash (ZEC) and Uniswap (UNI), have also seen significant gains, with ZEC and UNI rallying by 41% and 37%, respectively, over the past 7 days.
ETF Inflows and Market Activity
Wall Street seems to be positioning for the continuation of Solana's current rally, as indicated by net inflows to exchange-traded funds (ETFs) linked to this token. According to data from SoSoValue, Solana ETFs have booked a 10-week streak of positive net inflows.
During the first 6 days of September, ETFs have brought in $5 million in total, as the market is taking a breather. However, on-chain data indicates an ongoing recovery, with weekly app fees surging to $91 million last week, up 20% compared to the week prior.
DEX volumes have averaged $18 billion in the past couple of weeks, the highest level seen in two months. This level of activity is similar to the one seen in January this year, back when SOL was trading at around $140.
Technical Analysis and Future Outlook
Heading to the daily chart, we can see that the $100 area has turned into the most heavily contested area for both bulls and bears. Following a strong spike during the weekend, bulls now need to defend this threshold to keep the rally going.
Positive momentum continues to be strong, as the Relative Strength Index (RSI) is sitting at 66. If the rally keeps going and breaks past the nearest high at $108, we expect that SOL could soon hit $120. This implies a 14% upside potential based on today's price.
While there are no guarantees in the cryptocurrency market, the current trend and market activity suggest that Solana (SOL) may be poised for further growth. However, it is essential to keep a close eye on key support areas, including the $100 level and the 200-day exponential moving average, to gauge the token's potential for a bull market.
As the market continues to evolve, it will be interesting to see how Solana (SOL) performs in the coming days and weeks. Will the token be able to sustain its current rally, or will it face significant resistance? Only time will tell.