Solana (SOL) is currently trading around $88 on Thursday after increasing by 7% the previous day. The token has been in a consolidation phase over the last three weeks, but has received new support from institutional inflows and derivatives activity.
The market has shown renewed interest in the asset as the price of SOL approached a significant resistance level, which could set its short-term trend.
According to SoSoValue data, there is also an increase in institutional demand for SOL, which came through spot SOL ETFs. The products saw $30.86 million in net inflows on Wednesday. It is the eleventh consecutive day of positive flows for the products.
The total assets under management for the products have reached $823.72 million. The inflows have come at a time when the market has been volatile over the last three weeks.
Source: SoSoValue
SOL Tests a Key Barrier as Momentum Slows
Crypto analyst CryptoPulse highlighted that SOL has faced resistance at a specific technical barrier. The token has been rising from the $76 support zone to the $88 to $90 resistance zone on the 12-hour chart.
The analyst emphasized the need for SOL to break through the $90 resistance zone for further growth. This will be confirmed if it closes above $90.
The token may fall to the $81 mid-range price if it fails to break through the $90 resistance zone. The token will further dip to $76 if selling pressure increases.
Source: X
Also Read: Solana Signals Volatility Explosion Near Wedge Apex: Bulls Watch $100 Target
Moreover, another analyst, Zaylia Grace, mentioned that the token was trading at $88 on Thursday after rising by nearly 7% during the day. The token has risen above the MA7 price level of $83.6. This showed improving short-term momentum.
The token continued to trade below the MA30 line around $90.2. This price continued to function as dynamic resistance. The analyst noted increasing volumes with a positive move in the MACD histogram.
Grace outlined several price levels to monitor. Resistance levels ranged from $90 to $92. A breakout at this price could pave the way for a move to the mid-$100s. Levels around $82-$83 functioned as support. A close above the MA30 with increasing volumes is necessary to confirm the trend.
Derivatives Data Signals Rising Market Positioning
CoinGlass data shows that token futures open interest stood at $5.34 billion on Thursday. This figure has risen by 7% over the past 24 hours.
The increase showed that more traders added exposure or increased leverage. Rising open interests often point to expectations of a decisive price movement.
The funding rate also changed. It turned positive at 0.0078%, compared to the previous day at -0.0040%.
Source: CoinGlass
Short liquidations amounted to $27.46 million in the last 24 hours. Long liquidations were at $4.16 million. This indicates more bearish positions were liquidated. The long/short ratio was at 1.0540.
Cryptocurrency is currently trading at a crucial resistance level. Breaking past this point will change the market structure. Failure to do so will keep the token within the consolidation range.
Risk Disclosure: This article is for informational purposes only and does not constitute financial advice.
Also Read: Solana Stabilizes Above $80 as $90 Break Confirms Momentum Shift
