Solana [SOL] is slowly forming a bullish structure but remains below the most recent lower high at $97. At press time, the altcoin was trading at around $77, but SOL’s daily volume had surged to $1.61 billion.
Notably, a crypto analyst predicted that capital inflows and on-chain activity were starting to support SOL’s potential rise toward $120.
Solana ETFs turn positive as dormant wallets return
Capital inflows came from Solana ETFs, which recorded the highest daily inflows in two weeks. The Bitwise Solana Staking ETF [BSOL] led the inflows with about 75,714 SOL worth $5.83 million, and it was the only ETF that recorded any activity on the 21st of July.
However, the positive net inflow did not last. The following day, Solana ETFs recorded outflows of 16.4K SOL worth $1.27 million, less than a quarter of the more than 75K BSOL purchased earlier.
The daily volume of Solana ETFs traded was $54.47 million, with all assets under management nearing $1 billion. In fact, Solana and Hyperliquid ETFs account for nearly 80% of non-BTC/ETH ETF volume.
Additionally, dormant wallets returning to Solana DEXs surged to 62K last week, up from below 20K. This was equivalent to a 400% increase from the previous week. This was the highest number of returning users in a period of more than a year.
As Solana ETFs hit a two-week high and dormant wallets return, it hints at shifting market sentiment.
Can SOL break out and surge into the $120-$130 zone?
The price charts showed Solana was forming a base at $75 after sweeping liquidity below this level. The altcoin has returned to the consolidation between $75 and $97, but the upper resistance remains a key challenge.
However, the signs of a potential breakout toward $120-$130 are emerging as a Moving Average (MA) cross occurred with the fast‑moving MA rising above the slower MA. Moreover, these targets depend on a bullish breakout in the coming weeks.
Therefore, Solana is expected to turn bullish structurally if it can close above $97.89. At press time, the RSI was supportive of the prediction as it traded above the neutral level, indicating buying pressure.
Otherwise, SOL is still bearish even though it reclaimed the most important level at $75.
Final Summary
- Solana ETFs’ inflows turned positive after $5.83 million was bought, and returning dormant wallets surged 400% in a week.
- Traders are eyeing SOL to reach the $120-$130 zone but only if it breaks out of the range and stays above $97.Â
