Volume Shows Big Players Are Reloading On Solana As They Push For 4-Month Highs

Solana is seeing renewed interest from institutional investors, who appear to have flipped bullish on SOL again. This follows the record inflows that the SOL ETFs have recorded since the start of this month, which have pushed the altcoin to a four-month high. 

Solana Sees Fresh Inflows From Institutional Investors

According to SoSoValue data, Solana ETFs have recorded a total net inflow of $90 million since the start of the month, higher than their net inflows over the past three months. Notably, these funds saw total inflows of $26 million on May 11, which is the highest daily net inflow since February 25. 

The Solana ETFs now boast total net assets of $1.02 billion, which represents almost 2% of SOL’s market cap. Meanwhile, renewed inflows into these funds pushed SOL to a four-month high of around $97, with the altcoin now eyeing a push toward the psychological $100 level. However, derivatives data paint a mixed signal about the sentiment towards SOL at the moment. 

CoinGlass data show that the long/short ratio is currently below 1, suggesting that more traders remain bearish on Solana. However, SOL’s derivative trading volume has surged by 33%, reaching $12.81 billion. Options volume is up 116%, reaching $37.75 million, while the options open interest has climbed 22% to $125 million. 

It is worth noting that Solana and the broader crypto market remain under bearish pressure as U.S.-Iran peace talks appear to have stalled. This has raised concerns that the war could begin again, which is bearish for crypto prices. At the same time, recent inflation data show that inflation is steadily rising due to the war in Iran.  

Other Bullish Fundamentals For SOL

In addition to renewed inflows into Solana ETFs, there are other bullish fundamentals for SOL, including the Alpenglow upgrade going live on the community test cluster. This comes ahead of the planned rollout on the mainnet in the third quarter of this year. This upgrade is notably the biggest consensus change in Solana’s history, and it aims to make the network 100x faster. 

Meanwhile, Western Union just launched its USDPT stablecoin on the Solana network, boosting the network’s adoption. The CLARITY Act is also set to advance, which would provide regulatory clarity for SOL once the Senate eventually passes the crypto bill. From a technical analysis perspective, crypto researcher Senior noted that technicals signal a strong buy sentiment, with the immediate resistance for SOL at $95. His accompanying chart indicated that SOL could easily rally to $100 if it successfully breaks above this resistance. 

At the time of writing, the Solana price is trading at around $90, down over 5% in the last 24 hours, according to data from CoinMarketCap.