Solana Price Forecast: SOL Rebounds Amid Steady ETF Inflows and Privacy-Focused Hackathon

Solana (SOL) rose 2% as of Monday, adding to a 3% gain from Sunday. The price move coincided with continued inflows into U.S. spot Solana-focused ETFs, indicating strong institutional interest.

A privacy hackathon, starting on Monday, offers $75,000 in rewards for private payment solutions. This initiative, which supports protocols like Zcash and Monero, could expand Solana's appeal among both retail and institutional investors.

Capital inflows into Solana futures suggest renewed demand from traders. Open interest in SOL futures increased by 4.90% in the past 24 hours, reaching $8.58 billion.

Why the Move Happened

The steady inflow into Solana-focused ETFs marks eight consecutive weeks of positive flows, with $41.08 million added last week. This trend reflects deepening institutional support for the blockchain.

The Privacy Hack, a new initiative, aims to enhance Solana's appeal by focusing on private transactions. The hackathon runs through February 1, with winners to be announced on February 10.

The rising interest in privacy-focused transactions aligns with broader industry trends. Analysts note growing institutional interest in compliant privacy solutions, such as zero-knowledge proofs and encrypted stablecoins.

How Markets Responded

On the derivatives front, capital inflows into Solana futures suggest renewed demand from traders. Open interest in SOL futures rose by 4.90% in the past 24 hours, reaching $8.58 billion.

The long-to-short ratio for Solana futures stands at 1.0235, indicating a greater number of active long positions. Short liquidations of $12.61 million have outpaced long liquidations of $2.14 million, signaling a larger wipeout of bearish positions.

Solana's price continues to show strength above key technical indicators. It has moved above the 50-day EMA at $136 and the R1 Pivot Point at $142 on the daily chart.

What Analysts Are Watching

Analysts are closely watching Solana's ability to surpass the November 4 low at $145. A close above this level could target the $150 mark, followed by the R2 Pivot Point at $159.

The Supertrend indicator is signaling a buy, and the RSI has moved toward the overbought zone at 63, indicating renewed buying pressure.

The MACD and green histogram bars are steadily rising above the zero line, further supporting bullish momentum.

Solana's technical outlook remains optimistic as it continues to hold above the Ichimoku cloud, suggesting controlled bullish momentum.

Traders are also monitoring the impact of the Privacy Hack on Solana's broader ecosystem. Success in this initiative could signal a stronger appeal for privacy-focused transactions on the blockchain.