Solana Bulls Push Price Toward Key Resistance at $89
Solana (SOL) has surged more than 19% this week, nearing its 200-day Exponential Moving Average (EMA) at $89. The bullish price action is supported by improved liquidity conditions in crypto markets following the US Treasury's decision to double its debt buyback operations.
The Treasury will increase liquidity support buybacks for longer-dated nominal coupon securities from $2 billion to at least $4 billion per operation, easing liquidity concerns and boosting risk appetite. This move has contributed to a short squeeze across the crypto market, with SOL surging over 10% on Wednesday and reaching a high of $90.20 on Friday.
SoSoValue data shows that SOL ETFs recorded an inflow of $14.58 million on Thursday, the highest single-day inflow since the end of July. This marks the third straight day of positive inflows for SOL this week, indicating robust institutional demand.
The technical outlook is bullish, with SOL holding above its 50- and 100-day EMAs at $76.91 and $78.63 respectively. However, the pair is now pressing against the 200-day EMA at $89.28, which could cap further gains on the first attempt.