Solana Surges 19% as Treasury Boosts Liquidity and Institutional Demand Rises

Solana's price surged over 19% this week, pushing closer to the key 200-day EMA at $89. The price action is supported by improved liquidity conditions in the crypto market, following the US Treasury's decision to double its debt buyback operations. Institutional demand for Solana remains strong, with US-listed spot ETFs recording a single-day inflow of $14.58 million on Thursday.

The technical outlook for Solana is constructive, suggesting further gains if the price breaks above the 200-day EMA resistance at $89.28. The Relative Strength Index (RSI) sits in overbought territory near 79, while the Moving Average Convergence Divergence (MACD) remains firmly positive.

Improving liquidity conditions have boosted Solana's price, with the US Treasury increasing its buyback operations for longer-dated nominal coupon securities. This move has eased liquidity concerns and boosted risk appetite in the crypto market.