Solana Surges 17% as Institutional Inflows and ETF Hopes Fuel Rally

Solana (SOL) has seen a notable increase in its price, mirroring the upward trends of Bitcoin (BTC) and Ethereum (ETH) over the past few days. The altcoin, with a fully diluted valuation of approximately $89.8 billion, experienced a 17 percent surge in the past week, reaching around $173 during the later North American trading session on Friday, May 9.

This price movement has been accompanied by significant volatility in the Solana market. The leveraged market for Solana recorded a net liquidation of about $31 million in the past 24 hours. Additionally, on-chain liquidations on native perpetual exchanges reached a high of over $47 million in the same period, increasing the likelihood of a short squeeze.

The Solana network has also seen substantial cash inflows from institutional investors, particularly from Sol Strategies, over the past few quarters. This influx, coupled with the growth of memecoins within the network, has contributed to an increase in the total value locked to over $8.7 billion.

Several fund managers are reportedly seeking to offer spot Solana ETFs in the United States. This move aligns with the U.S. SEC's accelerated pro-crypto stance, which has been more pronounced in recent months compared to previous administrations.

From a technical perspective, Solana's price appears to be influenced by bullish sentiment. In the 2-hour timeframe, the SOL price successfully rebounded from a breakout of a falling logarithmic trend. The MACD line has crossed the zero line, and the Relative Strength Index (RSI) is above the 70 percent level, indicating a strong upward momentum. According to the analyst's forecast, the next targets for SOL price are $187 and $240. The macro-bullish stance for SOL price will be fully confirmed once the altcoin crosses above the 200-day Moving Average Simple (SMA).