Solana Price Forecast: SOL Bulls Target $160 as ETFs Remain Strong

Solana (SOL) extended its gains to over $139 on Friday, supported by robust inflows into spot ETFs and positive on-chain activity. Institutional demand for Solana remains elevated, with $41 million in weekly inflows reported through Thursday. The total net assets managed in these ETFs have surpassed $1.1 billion, signaling sustained institutional interest.

On the technical side, SOL's price rebounded from the 50-day EMA after a brief consolidation period. It now trades above $139, with bulls eyeing the next resistance level at $160. The RSI and MACD indicators confirm bullish momentum, with both metrics above the neutral threshold.

Morgan Stanley's recent filing for a Solana ETF, alongside its Bitcoin offering, has added further momentum to the asset. This move reinforces the growing institutional acceptance of crypto assets and may expand retail investor access through platforms like E*Trade according to Coinpedia.

Why Is Institutional Demand for Solana Growing?

Solana's spot ETFs have recorded the largest weekly inflows since mid-December, with $41.08 million added through Thursday. This trend reflects the continued institutional interest in the network since its ETF launch on October 28. The total net assets under management in Solana ETFs have surpassed $1.1 billion, indicating a significant and sustained inflow of capital.

In addition to ETF activity, Solana's stablecoin ecosystem has shown signs of recovery. The total stablecoin supply on the network has reached $15.32 billion, according to DefiLlama data. This growth in stablecoin activity supports network usage and could attract more institutional and retail users.

Morgan Stanley's filing for a Solana ETF adds another layer of institutional validation. The bank's move suggests that more traditional financial players are considering Solana as a viable investment vehicle. If approved, these ETFs will make it easier for investors to gain exposure to Solana without directly holding the asset, potentially increasing liquidity and market depth.

What Do Technical Indicators Suggest About Solana's Price Outlook?

SOL's price has broken above key resistance levels and now trades above $139. It has also closed above the 50-day EMA, a technical confirmation of the upward trend. The RSI reading of 61 on the daily chart indicates that bullish momentum is gaining traction, with the metric above the neutral 50 level.

The MACD indicator also shows a bullish crossover, with the histogram rising above the neutral level. These signals suggest that the upward trend is likely to continue unless SOL corrects below the 50-day EMA at $136.75, which would trigger further bearish pressure according to FXStreet analysis.

In the event of a continuation, SOL could target the $160 resistance level, which is close to its 100-day EMA. This level represents a key psychological and technical threshold. A sustained close above it would validate the broader bullish case for Solana and could lead to further institutional inflows as reported by FXStreet.

What Institutional Developments Could Affect Solana's Long-Term Trajectory?

Morgan Stanley's Solana ETF filing is a significant development that could broaden the asset's institutional adoption. The bank's decision to allow crypto investments in retirement accounts has also increased exposure for everyday investors. If approved, this could increase the overall demand for Solana and provide more legitimacy to the asset class according to Coinpedia.

The bank's Solana Trust will feature staking capabilities, allowing investors to earn rewards from their holdings without managing private keys or wallets. This approach could make the asset more attractive to conservative investors who are looking for a passive income stream while maintaining exposure to crypto as reported by Yahoo Finance.

The broader institutional crypto adoption trend, including the approval of spot Bitcoin ETFs and the easing of regulatory restrictions on banks acting as intermediaries, also supports the long-term case for Solana. These developments could lead to more firms entering the space and further expanding the investor base according to TradingView.

Solana's growing real-world asset (RWA) ecosystem is another factor that could boost institutional interest. The RWA ecosystem recently reached a new all-time high of $873 million, indicating increased adoption and use cases beyond speculative trading. This growth in real-world utility could attract more institutional capital.