Solana targets $120 as ETF inflows and network activity rise

Solana SOL has gained 44% over the past 30 days as buyers continue defending the psychologically important $100 level.

The token rebounded strongly from this support, triggering a sharp increase in market activity. Trading volume rose 64% over 24 hours to $3.5 billion, representing almost 6% of Solana’s circulating market capitalization.

The rebound indicates that demand remains resilient despite uncertainty surrounding the US interest-rate outlook and ongoing tensions between the White House and the Federal Reserve.

Federal Reserve uncertainty fails to derail crypto rally

Expectations for the Federal Reserve’s September policy decision shifted following stronger-than-expected US employment data.

According to the CME FedWatch Tool, the probability of a September rate increase rebounded to 58% after briefly falling to 50%.

Higher interest rates typically pressure risk assets by increasing borrowing costs and making yield-bearing traditional investments more attractive. 

Nevertheless, cryptocurrency prices continued to advance despite the renewed possibility of tighter monetary policy.

President Donald Trump’s administration has publicly pressured the central bank to cut interest rates at its next Federal Open Market Committee meeting. However, the latest Fed minutes suggest policymakers may instead be leaning toward a rate increase.

The disagreement has intensified tensions between the White House and the central bank, adding uncertainty to the macroeconomic outlook.

Despite these concerns, several altcoins posted significant weekly gains. Zcash and Uniswap rallied 41% and 37%, respectively, while Solana maintained its position above $100.

Institutional demand continues to support Solana’s recovery, with SOL-linked exchange-traded funds recording their 10th consecutive week of positive net inflows.

According to CoinGlass, Solana ETFs attracted $193 million in August as the token moved above its 200-day exponential moving average.

Inflows have slowed during September, with the products attracting approximately $5 million during the month’s first six days. The decline suggests institutional demand remains positive, although investors have become more cautious following SOL’s recent rally.

Continued inflows could help strengthen support around current levels and improve the chances of a sustained move toward $120.

On-chain data also supports Solana’s improving outlook. Applications operating on the network generated $91 million in fees last week, marking a 20% increase from the previous week. Higher application fees generally reflect rising user activity and demand for services within the ecosystem.

Meanwhile, decentralized exchange volume on Solana averaged $18 billion during the past two weeks, its highest level in two months.

This activity is comparable to levels recorded in January, when SOL traded near $140. While historical activity does not guarantee a similar price move, the increase suggests that the current rally is being accompanied by greater on-chain usage.

Solana price outlook: Can SOL reach $120?

Solana’s technical outlook remains bullish while the token stays above the $100 support level and its 200-day EMA.

The $100 region has become a heavily contested area between buyers and sellers. Bulls must continue defending this level to preserve the current market structure and prevent a deeper correction.

The Relative Strength Index stands at 58 on the 4-hour chart, signaling strong positive momentum. It remains below the overbought threshold of 70, which means SOL has room for further rally. 

Immediate resistance sits around the recent high of $108. A decisive breakout above this level could accelerate the rally toward $120, representing an upside potential of approximately 14% from the current price.

Conversely, a sustained move below $100 and the 200-day EMA would weaken the bullish outlook and increase the risk of a deeper pullback.