Solana is experiencing a resurgence, with $120 million inflows over a month. This trend follows significant capital outflows previously. Native memecoins are reviving interest, yet SOL must breach key resistance levels to indicate solid growth. Investors are mixed between optimism and caution amid volatile market conditions.
Solana has regained attention, witnessing capital inflows of nearly $120 million within a month, following a significant downturn. This influx has intrigued analysts about the potential recovery of the SOL token, sparking discussions about market sentiment amidst a still uncertain environment. Investors are divided between optimism regarding Solana’s fundamentals and caution regarding market trends, prompting questions about the underlying causes of renewed interest.
Data from Debridge indicates that, over the last 30 days, Solana has absorbed over $120 million from various blockchains, predominantly from Ethereum, which contributed approximately $41.5 million. The inflow is complemented by capital from other blockchains: $37.3 million from Arbitrum, $16 million from Base, $14 million from BNB Chain, and $6.6 million from Sonic. This trend is particularly notable, given that Solana had previously faced a capital exodus, losing $485 million to Ethereum and BNB Chain amid the LIBRA memecoin crisis.
Lucas Outumuro from IntoTheBlock remarks on this capital return as indicative of a regained confidence in Solana, particularly following the recent market upheaval. The rise of native memecoins, such as POPCAT, FARTCOIN, BONK, and WIF, has revitalised speculative enthusiasm within the ecosystem, with recent seven-day returns of +79%, +51%, +25%, and +21% respectively. This speculative momentum is reflective of a renewed interest in Solana, reinforcing the volume of trading activity despite existing market fragility.
Despite the positive liquidity inflow, Solana’s technical analysis presents a mixed outlook. While SOL has increased over 17% in the past week, it faces significant resistance around $140, which coincides with the 50-day exponential moving average. Furthermore, a closing price above $147 is essential for confirming a bullish reversal. Currently, the outlook includes bearish divergences on 4-hour charts, often precursors to price corrections.
Support is identified between $115 and $108, where demand may establish a price floor if necessary. Notably, approximately 32 million SOL have been acquired around $130, approximately 5% of the total supply, suggesting a degree of local stability. The disparity between improving fundamentals and hesitant technical indicators suggests caution among investors. Although the potential for bullish trends exists, verification through technical indicators remains crucial before a sustained price increase in SOL is realised. Investors are advised to monitor for catalysts that could strengthen bullish momentum.
