Solana (SOL) is demonstrating continued upward momentum, extending its rally for a third consecutive day as it consolidates within the $121-$145 range. Strong investment flows into Solana ETFs over the past four days signal robust confidence from institutional investors. In the derivatives market, a risk-on sentiment prevails, with the SOL futures market expanding and bullish positions increasing.
Derivatives and ETF Markets Show Strength
Data indicates a surge in open interest (OI) for SOL futures contracts, reaching $7.26 billion, a 2.89% increase in 24 hours. This surge reflects growing risk appetite among investors and reinforces expectations for a significant Solana recovery.
The funding rate is currently at 0.0224%, indicating that bullish traders are willing to pay to maintain their long positions, a clear sign of confidence. Furthermore, approximately $9.64 million in short positions were liquidated, nearly double the $5.20 million in long positions, highlighting the strong dominance of bullish sentiment. The ratio of long positions to short positions has also shifted positively, with long positions increasing to 52.55% compared to 44.83% on Saturday. This, coupled with the increase in OI and funding rates, indicates a clear bullish bias in the Solana derivatives market.
The ETF market has also seen positive developments, with net inflows of $16.54 million on Tuesday. This marks the fourth consecutive day of inflows and the highest level since December 2nd, demonstrating renewed interest from institutional investors.
On-Chain Metrics Support Growth
On-chain data reveals sustained demand for Solana. The total value locked (TVL) within the Solana ecosystem has increased by almost 2% in the last 24 hours, reaching $8.984 billion. The supply of stablecoins has also grown by nearly 3% this week, reaching $15.586 billion. These indicators collectively reinforce Solana's growth trajectory.
Technical Outlook: Can Solana Break $145?
Solana closed near $140, continuing the previous day's 3% gain. This recovery is approaching the November 14th high of $145, a significant resistance level at the upper end of the consolidation pattern. The lower end is supported by the June lows around $126.
A successful breakout above $145 could pave the way for further gains, potentially targeting the 50-day EMA at $152, and further up, the 200-day EMA around $172.
Technically, the short-term trend is improving as selling pressure eases. The daily RSI is currently at 48, approaching the neutral zone, indicating diminishing selling pressure. Simultaneously, the MACD lines are converging towards the zero level, with green histograms reappearing, reflecting increasing upward momentum.
Conversely, a correction would find initial support at $126, followed by the April lows around $95. A break of the $145 resistance could lead to a 25% increase in Solana's price.
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