Solana Sees $120M Liquidity Inflow, Memecoins Surge 79%

Solana (SOL) has seen a significant influx of liquidity, with over $120 million bridged to its blockchain from competing networks in the past 30 days. This movement indicates a renewed confidence in Solana, which had previously faced challenges, including the LIBRA memecoin scandal in Argentina. The largest contributions came from Ethereum and Arbitrum, with $41.5 million and $37.3 million respectively, followed by Base, BNB Chain, and Sonic with $16 million, $14 million, and $6.6 million.

This liquidity inflow coincides with a surge in Solana-based memecoins. POPCAT, FARTCOIN, BONK, and WIF have all seen double-digit price increases over the past week, with POPCAT leading the pack at 79%. This rally suggests a growing interest in Solana's ecosystem, despite recent setbacks.

Technical analysis of SOL's price action reveals mixed signals. For a bullish trend to be confirmed, SOL must close a daily candle above $147. Currently, it remains below $140, with the 50-day exponential moving average acting as resistance. On lower timeframes, SOL has shown a bearish divergence between price and the relative strength index (RSI), which has historically signaled correction periods. However, the 4-hour chart indicates an inverse head and shoulders pattern, suggesting a potential 40% upside toward $190 if confirmed.

The $120-$125 price zone is critical for SOL, as it represents the point of control (POC) where most of its annual trading volume has occurred. If SOL drops below $120, it could plummet to $100 or lower, as seen previously when it broke below this level and fell to $96. Glassnode data shows that over 32 million SOL (5% of total supply) were bought at the $130 level recently, indicating strong support around this price.

In a significant development for institutional adoption, Canada launched the first spot Solana ETFs in North America on April 16. Several financial firms, including 3iQ Corp., Evolve Funds, CI GAM, and Purpose Investments, introduced these ETFs on the Toronto Stock Exchange following approval from the Ontario Securities Commission. These ETFs provide direct exposure to SOL's spot price, unlike US offerings that track Solana futures. This move could attract increased institutional interest and investment flows to Solana, potentially supporting its price growth in the coming months.