Solana (SOL) Eyes Rally to $120 as ETFs Book 10-Week Streak of Positive Inflows

Solana (SOL) has gone up by 44% in the past 30 days, and bulls have managed to defend the $100 psychological support in the past few days, as demand seems resilient to macroeconomic woes.

Trading volumes jumped by 64% in the past 24 hours, after the token bounced strongly off the $100 threshold. At $3.5 billion, this level of activity accounts for nearly 6% of the asset’s circulating market cap.

Last week, after a brief drop to 50%, the odds of a rate hike in September by the Federal Reserve jumped back to 58%, following a better-than-expected jobs report in the United States.

However, President Donald Trump has addressed Fed officials directly, and the rhetoric between the White House and the country’s central bank seems to be getting heated.

Trump’s administration is pressuring the Fed to lower rates during the next FOMC meeting, but the latest minutes indicate that the Committee is actually leaning toward a rate hike.

Regardless of this ongoing dispute, the market has opted to push crypto prices higher and, apart from SOL, other altcoins have won big in the past 7 days, including Zcash (ZEC) and Uniswap (UNI), both of which have rallied by 41% and 37%, respectively.

ETF Inflows and On-Chain Favor a Bullish Outlook for SOL

Wall Street seems to be positioning for the continuation of Solana’s current rally, as indicated by net inflows to exchange-traded funds (ETFs) linked to this token.

According to data from SoSoValue, Solana ETFs have booked a 10-week streak of positive net inflows. Meanwhile, last month, these vehicles brought in as much as $193 million as the token rallied past its 200-day exponential moving average (EMA).

During the first 6 days of September, ETFs have brought in $5 million in total, as the market is taking a breather.

However, on-chain data indicates an ongoing recovery. Weekly app fees surged to $91 million last week, up 20% compared to the week prior. Meanwhile, DEX volumes have averaged $18 billion in the past couple of weeks — the highest level seen in two months.

This level of activity is similar to the one seen in January this year, back when SOL was trading at around $140.

Solana Could Surge to $120 If Bulls Defend This Key Support

We believe that this could be the beginning of a bull market for Solana, provided that the token manages to stay above key support areas, including the $100 level and the 200-day exponential moving average.

Heading to the daily chart, we can see that the $100 area has turned into the most heavily contested area for both bulls and bears. Following a strong spike during the weekend, bulls now need to defend this threshold to keep the rally going.

Positive momentum continues to be strong, as the Relative Strength Index (RSI) is sitting at 66. If the rally keeps going and breaks past the nearest high at $108, we expect that SOL could soon hit $120.

This implies a 14% upside potential based on today’s price.