Solana approaches $94 as ETF inflows continue: Check forecast

Solana (SOL), similar to other leading cryptocurrencies, is currently in the green, up 3% in the last 24 hours. 

The coin is trading above $89 on Friday as bullish momentum builds.

The bullish momentum is supported by growing institutional demand for Solana exchange-traded funds (ETFs).

The derivatives data also paints a bullish picture, with the momentum indicators adding further confluence to the narrative. 

Institutional investors increase demand for SOL

SOL is trading close to $90 per coin as institutional demand for Solana products has increased over the past few days.

According to SoSoValue, spot SOL ETFs recorded an inflow of $3.92 million on Thursday after a $1.66 million inflow the previous day. 

The institutional demand for SOL ETFs has remained strong despite the SOL price consolidation, as weekly flows total $3.10 million so far this week.

This marks the fifth consecutive week of positive flows since February 13. 

SOL’s price could continue soaring higher if the inflow trend continues and intensifies. 

The derivatives data also support a bullish outlook for Solana.

CoinGlass’s funding rate data for Solana flipped to a positive rate on Thursday, reading 0.0079%, indicating longs are paying shorts and suggesting bullish sentiment toward SOL.

Furthermore, Solana’s long-to-short ratio now reads 1.07, its highest level in over four weeks.

The ratio above one suggests that more traders are betting on Solana’s price to rally.

Solana eyes a breakout above the $95 resistance

The SOL/USD 4-hour chart remains bearish and efficient as Solana is up 10% so far this week.

The short-term bias remains mildly bullish as Solana has established a strong support around the $77 region. 

It has surpassed the $86 resistance level thanks to its ongoing rally and now targets a breakout above the $94 trendline resistance region. 

The momentum indicators show that SOL is bullish and its price could rally higher in the near term.

The Relative Strength Index (RSI) on the 4-hour chart climbs above 61, signaling improving upside momentum after a prolonged sub-50 phase. 

Furthermore, the Moving Average Convergence Divergence (MACD) indicator remains in positive territory, reinforcing a recovering bullish pressure.

The bullish pressure remains despite SOL trading well below the falling 50-day and 100-day Exponential Moving Averages (EMAs). 

If the recovery fails, the bulls would need to defend the first major resistance level at $86.

Failure to defend this support will expose the weekly low of $77, where buyers have previously stepped in. 

On the upside, if the recovery persists and Solana breaks above the $94 trendline resistance, it could extend its rally towards $120, where the declining EMAs converge to form a broader resistance zone.

However, the bulls would need to overcome the 38.2% retracement at $98 and the buying pressure around that region if they wish to recapture $120. 

Hence, a sustained trading back below $86 would weaken the current bullish bias and refocus attention on the recent lows toward $77.

Meanwhile, a break above $94 would strengthen the bullish bias and bring $120 into focus.