Solana’s Recent Rally Faces New Hurdles

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After a remarkable increase exceeding 22% over the last two weeks, Solana‘s (SOL) value dipped below $119 on Monday, trading at $118.36. Despite this pullback, Solana has retained most of its recent gains. Market participants are now closely monitoring whether institutional demand and network activity can sustain this momentum.

What is Driving ETF Investment?

Over the past week, spot SOL ETFs have witnessed substantial inflows totaling $188.22 million, marking the second-largest weekly influx since their inception, according to SoSoValue data. This capital inflow extends a consecutive 13-week streak of positive net investments in these financial products. However, while these inflows reflect growing investor confidence, they do not necessarily ensure long-lasting price increases. Upcoming data releases may provide insights into continued demand following the recent price hike.

How High Are Solana’s On-Chain Metrics?

On Monday, Solana reported that its stablecoin supply soared to a record high of $17.3 billion. Stablecoins facilitate transfers, trading, and various applications by providing dollar-based liquidity on the network. Although the increased supply indicates a higher potential fund usage, it does not directly reflect the extent of their active utilization.

Moreover, the ecosystem for real-world assets (RWA) expanded to over 3,000 assets worth more than $4.6 billion. The number of wallets holding tokenized stocks surpassed one million. RWA represents financial or physical assets digitally represented on the blockchain.

Notable observations from the latest data:

Spot SOL ETF inflow reached its second-highest weekly level at $188.22 million since launch.

Solana’s stablecoin supply hit an all-time high of $17.3 billion.

The RWA ecosystem grew beyond 3,000 assets, exceeding $4.6 billion.

Technically, SOL maintains its place above the 50-day exponential moving average set at $101.81, along with the 100 and 200-day averages at $93.94 and $94.65, respectively. These indicators suggest that the short-term technical structure remains intact despite Monday’s downturn.

The Relative Strength Index (RSI) reading at 63 indicates positive momentum without being overbought. The MACD histogram remaining in positive territory complements the upward trend. However, further downturns could weaken these indicators.

A primary resistance point stands at $123.96, and a daily close above this level would signal renewed buying strength. On the downside, the first significant support is at the 50-day average of $101.81, with subsequent levels between $93 to $95 potentially coming into play should a decline deepen.

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