Solana Price Prediction: SOL Eyes Bullish Breakout to $90 as Trend Line Support Holds

Solana (SOL) is the second best-performing asset in the top 5 in the past 30 days with a 12% gain, as a trend line support has managed to keep the token afloat during the latest selling spree.

Trading volumes have retreated a bit in the past couple of days, moving down from around $2.2 billion to $1.7 billion as the market has taken a breather after four consecutive days of green candles.

Net inflows to exchange-traded funds (ETFs) linked to Solana have been positive this week, with investors pouring $7.2 million into these vehicles.

Thus far in July, net inflows remain positive at nearly $12 million. A simple run rate of this amount results in a projected total of $16 million for the month, which can be considered an improvement compared to a $786,000 net outflow a month ago.

However, this also results in an 86% drop in net inflows compared to May, back when investors deposited $115 million into these ETFs at a point when SOL traded at around $80 per token.

Market Sentiment Improves, But the Macroeconomic Landscape Remains Unfavorable for Cryptos

Market sentiment has been improving lately, with the Crypto Fear and Greed Index rising near Neutral territory at 39. However, the macroeconomic backdrop remains unfavorable.

Higher oil prices resulting from the U.S.’s persistent conflict with Iran and its decision to resume its bombings on the nation-state have prompted analysts to revisit their projections for interest rates this year.

Data from FedWatch indicates that over 50% of analysts expect a 25 basis point increase by the Federal Reserve as of September, and that could contribute to keeping a lid on the price of altcoins like Solana in the near term.

Meanwhile, last week, Solana’s stablecoin supply hit a new all-time high at $17 billion according to data from DeFi Llama, indicating that investors continue to rely on this blockchain to park, transfer, and earn money on their stable assets.

However, application fees remain heavily depressed and currently sit at levels not seen in at least two years, indicating that network usage and ecosystem growth have retreated during this bear market.

Solana Could Rise to $90 If It Breaks the $78 Resistance

We have been expecting a strong price move for SOL, as a signal that tracks the behavior of daily active users (DAUs) was just triggered.

We explained that whenever the 30-day moving average crosses above the 50-day moving average for DAUs, this tends to precede pronounced price moves.

That may translate into either a bearish trend line breakout for SOL that pushes it to the nearest support at $67, or a bullish breakout that propels the token to $90 at least.

The daily chart shows the key levels to watch for Solana in the next few days. We saw this trend line support holding strong on July 17, as the price bounced off it and rallied for 4 days in a row, which confirms its technical relevance.

Now, the price action has hit a former support area at $78 that acted as resistance just a couple of weeks ago. If SOL rises past this mark, we expect a sustained uptrend to $90 – $95, as this is where the 200-day exponential moving average (EMA) currently sits.