Solana Price Hits $100 as Institutional Demand Drives Growth
Solana's price is hovering around $100 on Monday, testing its psychological support level after a 3% decline the previous day. The SOL-focused Exchange Traded Funds (ETFs) have seen significant inflows, with over $150 million pouring in last week, indicating strong institutional demand.
The ETF inflows are a significant indicator of long-term growth, and Solana is gaining traction among institutions amid major governance updates. Validators on the network voted to double the disinflation rate to 30% and establish a new governance framework, which should promote long-term growth.
The technical outlook for Solana suggests that it may sustain its price above $100. The Relative Strength Index (RSI) has eased from overbought conditions, showing reduced buying pressure, while the Moving Average Convergence Divergence (MACD) edges lower toward the signal line, reaffirming reduced buying pressure.
The next notable hurdle for Solana is its December 18 low at $116.88, which represents a significant structural barrier to any extended rally. Immediate technical support lies at the February 1 low of $98.02, followed by the 200-day Exponential Moving Average (EMA) and the 50-day EMA.