Solana (CRYPTO: SOL) broke out above a key resistance level as the broader crypto rally continued and inflows into its ETFs and staking kept climbing. SOL jumped to $111.78, its highest level since January and 85% above its year-to-date low.
Solana ETF and Staking Inflows are Rising
SOL token continued rising this week, helped by its improving fundamentals and rising demand. The developers activated a major upgrade that dropped its slot time from 300 milliseconds to 250, a 17% boost. A slot refers to the short window given to one validator to build and publish a block. By shrinking the time, it helped the network become much faster.
The upgrade comes as Solana continues to test the Alpenglow upgrade, which will cut the finality time from about 12.8 seconds to 100 milliseconds. It will also replace Tower BFT with Votor and Rotor. Voter swaps on-chain voting for off-chain signature certificates, while Rotor replaces the older Turbine system to slash transaction finality time.
Solana’s fundamentals are also improving. Its decentralized exchanges handled more than $47 billion in trading volume so far this month, down from $62 billion in August, yet still the most of any blockchain. Solana’s stablecoin supply has also climbed above $15 billion.
These numbers partly explain why investors are piling into SOL tokens. SoSoValue data shows that spot Solana ETFs have had over $28 million in inflows this month. It is the third consecutive month of inflows, with their total assets under management being $1.62 billion. The biggest of these funds are by companies like Fidelity, Bitwise, Grayscale, and Morgan Stanley.
Investors are also piling into Solana’s staking pools. Over 439 million SOL tokens worth $49 billion have been staked. This gives it a staking ratio of nearly 70%, with the staking rate being 6.36%. Rising staking market cap is a sign that investors expect the price to continue rising.
Solana Price Prediction: Technical Analysis
SOL price chart | Source: TradingView
The daily chart shows that the SOL token has rebounded and is now hovering at the highest level since January. It has formed a golden cross pattern as the 50-day moving average crossed the 200-day one.
The token has also moved above the key resistance level of $110, the upper side of the bullish flag pattern. This pattern is made up of a vertical line and a descending channel.
Therefore, the token may continue rising, with the next important target to watch being at $150. A drop below the support level of $96 will invalidate the bullish outlook.
Image: Shutterstock
Login to comment