Solana (SOL) has gained 12% over the past month, making it the second-best performer among the top five cryptocurrencies by market cap. Currently, SOL trades near $77 with a daily trading volume of $1.61 billion, though volumes have pulled back slightly from recent highs around $2.2 billion.

ETF Inflows Signal Renewed Investor Interest

This week saw $7.2 million flow into Solana-linked ETFs, including a $5.83 million inflow for the Bitwise Solana Staking ETF (BSOL) on July 21, marking the strongest single-day ETF inflow in two weeks. However, the following day recorded outflows of $1.27 million, about a quarter of the previous day's gains. So far in July, Solana ETF net inflows have reached nearly $12 million, a turnaround from June's $786,000 net outflow, though this is still down 86% compared to May’s peak inflows of $115 million when SOL hovered near $80.

Growing On-Chain Activity and Technical Setup

One standout metric is the sharp return of dormant wallets to Solana decentralized exchanges: last week, 62,000 inactive wallets came back, a 400% increase from under 20,000 the prior week, and the highest reactivation in over a year. Solana’s stablecoin supply also hit a new record at $17 billion, pointing to increased DeFi activity, despite application fees lingering near two-year lows.

Crypto analyst Michaël van de Poppe noted SOL is holding key support at around $75 and called the current moment "just a matter of time" before prices push past $120, indicating growing buying pressure. This aligns with a moving average crossover signal where the short-term MA rose above the longer-term MA, a classic bullish sign. The Relative Strength Index (RSI) has moved into positive territory, confirming this momentum.

Resistance sits at $78, with the 200-day EMA between $90 and $95 acting as the next barrier. A decisive break over $97.89 would shift market sentiment from bearish to bullish and potentially set SOL on course for the $120 to $130 range. The Crypto Fear and Greed Index stands near neutral at 39. However, the prospect of a 25 basis point Federal Reserve rate hike by September could weigh on altcoin gains in the short term.

This content is for informational purposes and not financial advice.