Solana Sees $78 Million Inflows, Active Addresses Surge 16 Million

Solana has recently experienced a significant surge in interest, with institutional investors and users alike showing renewed confidence in the cryptocurrency. This renewed interest is evident in the substantial inflows into Solana exchange-traded products (ETPs), which attracted $78 million this week, the highest among altcoins. This influx of capital indicates that larger investors, such as hedge funds, are betting on the SOL price to rise, suggesting a bullish outlook for the cryptocurrency.

In addition to institutional interest, user activity on the Solana network is also on the rise. The number of active addresses, which measures the number of wallets sending or receiving SOL in a 24-hour period, has increased to nearly 16 million, up from the lows in early June. This increase in active addresses suggests that more users are engaging with the Solana network, which is typically a positive sign for the SOL price. Historically, similar increases in user activity have coincided with significant price movements, such as the climb from under $130 to over $200 in late 2024.

Furthermore, netflows, which track the movement of SOL into or out of exchanges, have stabilized in recent weeks. After a period of significant outflows in April and May, July has seen flatter netflows, indicating that fewer traders are rushing to sell their SOL holdings. This stabilization suggests that traders are more confident in the long-term prospects of Solana and are not in a hurry to exit their positions. The muted netflows also imply that many Solana token holders are in profit and are choosing to hold their tokens rather than sell, further supporting the current price action.

Analysts have set ambitious price targets for Solana, with one popular analyst, Ali, predicting that a weekly close above $170 could unlock a rally all the way up to $2,000, based on long-term Fibonacci extensions. This prediction is based on the idea that past price trends can provide a roadmap for future price movements. However, a more cautious view comes from the current price chart, which shows that Solana price recently broke above the $161.17 level, a key Fibonacci level that indicates real momentum. If this breakout holds, the next levels to watch are $172, $198.25, $217.89, $274.61, and $366.39. As of now, the SOL price is around $166.81, and as long as it stays above $161, bulls are in control. The next real test will be a strong close above $170, which could flip the entire mood and potentially lead to a rally towards the $200–$274 zone, and even $2,000 if the big Fibonacci chart plays out.

In summary, the latest Solana price action is not just hype. There is real money flowing into the cryptocurrency, more users engaging with the network, and fewer traders rushing for the exit. If the SOL price can break $170 soon, the $200–$274 zone could be back in play, and if the big Fibonacci chart plays out, even $2,000 is on the map. This renewed interest and confidence in Solana suggest that the cryptocurrency is poised for further growth in the coming months.