Solana ETFs Book a 15-Day Streak of Positive Inflows – Next Stop $200?

Solana (SOL) has recovered in the past few days after hitting the $130 level, as market participants seem to be expecting an improvement in macroeconomic conditions.

Interest in SOL has been rising lately with the launch of multiple Solana exchange-traded funds (ETFs).

Data from SoSoValue indicates that these vehicles have brought in positive inflows for 15 days in a row. Since November 5, they have taken in $621 million from investors. As a result, its combined assets under management (AUM) have surged to $888 million.

Solana ETF Inflows – Source: SoSoValue

The largest of these ETFs is Bitwise’s Solana Staking ETF (BSOL), primarily due to its attractive staking rewards of 7%. This vehicle alone has received nearly $600 million of that total.

Meanwhile, Franklin Templeton, a big asset management firm with over $1.8 trillion in assets under its wing, has filed to launch a Solana ETF this week as well.

Paired with the flood of digital asset treasuries (DATs) holding billions of dollars worth of the token, the stage looks set for a supply shock when market sentiment improves.

In addition, monthly volumes on DEXs within Solana had been increasing for four months in a row until November started. If the market is ready to re-surge after the latest macroeconomic woes, institutional adoption and ecosystem growth also favor a bullish outlook for SOL.

Macroeconomic Variables Improve But On-Chain Data Favors Bearish Outlook

The past few weeks have been quite bearish for altcoins, and Solana is not the exception. The token has experienced a 31% retreat as the October 10 sell-off catalyzed a massive risk-off move across the market.

However, last week’s strong jobs report in the United States, along with dovish comments from the head of the NY Federal Reserve seem to have changed the narrative concerning an expected interest rate cut for December.

Market analysts initially estimated that the odds of a cut stood at 40% after Chairman Powell deemed the cut as “far from certain.” Those chances experienced a U-turn and currently sit at 80% following Friday’s positive developments.

Solana Weekly Transactions (YTD) – Source: Artemis

On the opposite side, on-chain data for the Solana blockchain is still bearish. Weekly transactions within Solana have plummeted since July this year, as meme coins did not manage to get out of their bear market during the May-September rally.

After peaking at 816 million back then, they closed last week at 556 million, meaning a 32% decline in just four months.

SOL Bounces Off $130 – Can It Make It Back to $200?

Solana found strong support at $130, and trading volumes spiked right after the token hit this mark, confirming its relevance from a technical standpoint.

SOL/USD Daily Chart (Binance) – Source: TradingView

The price needs to rise past the $150 mark to invalidate the market’s bearish structure in the daily chart. If that happens, SOL could recover to $180 first and then $200 before the year ends, or maybe a bit after.

The Relative Strength Index (RSI) has sent a buy signal after rising above the 14-day moving average. Wall Street’s appetite for Solana seems to be strong while macroeconomic variables are improving as well.

Was $130 the bottom of this latest correction? Everything is pointing to a “yes” right now.