ETF Inflows and Treasury Boost Fuel Rally

Key Takeaways

• Solana rallied nearly 20% over the past week, reaching $91 before consolidating
• The US Treasury’s decision to double buyback operations injected liquidity into markets, supporting crypto risk appetite
• Spot SOL ETFs attracted $14.58M in net inflows on Thursday, marking the strongest single-day performance since late July
• Derivatives markets saw explosive activity: futures volume soared 177% to $13.7B and open interest rose to $5.66B
• Technical focus is on the 200-day EMA near $89; a clean breakout could target the $96–$100 zone

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Solana has delivered an impressive weekly performance. The SOL token rallied over 19%, touching $91 at its peak before settling near $89. This rally coincides with renewed optimism across cryptocurrency markets following a market-friendly policy shift from the US Treasury.

The catalyst came when the US Treasury Department announced it would expand buyback operations for longer-maturity Treasury bonds, increasing the size from $2 billion to a minimum of $4 billion per operation. This move addressed liquidity concerns and encouraged greater risk-taking across global markets, including digital assets. Solana responded with a 10%+ surge on Wednesday alone.

Institutional interest has accelerated alongside the price action. According to SoSoValue tracking data, SOL spot exchange-traded funds pulled in $14.58 million in net inflows on Thursday. This represents the largest single-day accumulation since late July and extends a three-day streak of positive flows.

Derivatives Markets Signal Strong Conviction

This rally isn’t just retail-driven hype. Solana futures trading volume exploded to approximately $13.7 billion, representing a 177% increase. Open interest expanded by roughly 7.9% to reach $5.66 billion. Options volume skyrocketed by over 400%. These metrics indicate sophisticated traders are making substantial position adjustments rather than simply riding market momentum.

Market analyst Ash Crypto pointed out on X that Solana just recorded its strongest daily close in three months, emphasizing that this weekly performance is notable even within the context of the broader crypto market rebound.

For weeks, SOL remained trapped in a tight range between $70 and $80, with consistent selling pressure preventing upward progress. The decisive move through the $78–$80 resistance zone, followed by the extension to $91, marks a significant structural change in market dynamics.

Critical Price Levels Ahead

Technically, Solana is currently testing its 200-day EMA, positioned around $89. The Relative Strength Index sits near 79, indicating overbought conditions, though the MACD continues to flash bullish signals. Immediate support has formed at the 50-day and 100-day EMAs, located at $76.91 and $78.63 respectively.

Looking ahead, bulls need to clear resistance at $96.19 to unlock the $98–$100 target zone. Should bears regain control, $80 represents the critical support level. A breakdown below that threshold would likely retest the $70–$72 range.

After peaking at $91 during this week’s session, SOL is currently changing hands around $89, maintaining its position above the 200-day EMA.

The post Solana (SOL) Rallies 19% to $91: ETF Inflows and Treasury Boost Fuel Rally appeared first on Blockonomi.

Source: https://blockonomi.com/solana-sol-rallies-19-to-91-etf-inflows-and-treasury-boost-fuel-rally/