Solana’s ETF Inflows Surge 40% as Price Eyes $120 Breakout

Solana (SOL) has seen a 2% increase over the past week, supported by a 40% surge in net inflows to exchange-traded funds (ETFs) linked to the altcoin in September. The $120 level remains a critical resistance point, with trading volumes staying elevated as the price lingers near this threshold. Current volumes stand at $2.3 billion, representing 3.2% of Solana’s circulating market cap.

Investors injected $271 million into Solana-linked ETFs last month, up from $194 million in August. This uptick suggests Wall Street is betting on the continuation of the current rally, potentially targeting the $150 mark next. Meanwhile, the market awaits the Federal Open Market Committee (FOMC) minutes on Wednesday for clues on future monetary policy, with odds of an October rate hike now at 19%. Lower inflation expectations could further boost risky assets like Solana.

On-chain data shows a steady rise in daily active addresses within the Solana network, supporting the ongoing rally. High app fees within the Solana blockchain, driven by increased usage of protocols like Pump.fun, also indicate strong fundamental growth. The last time these fee levels were observed, SOL was approaching $200, suggesting the token’s valuation may continue to improve.

Technically, SOL is testing key resistance at $120. If it breaks past $125, the rally could extend toward $150. However, a failure to surpass this level might lead to a pullback toward the $110, $115 range. The Relative Strength Index (RSI) remains in bullish territory at 64, but buying pressure will determine the next move.