Solana (SOL) has demonstrated significant bullish momentum, climbing above the $142 level on Monday with a 2% gain. This upward movement follows a bounce from the technical support at the 50-day exponential moving average of $136. The price action shows SOL consolidating above $140, with traders eyeing a key resistance level at $145. A successful break above this level could pave the way for a test of $150 and potentially higher targets near $162 and $170.
Institutional demand for Solana remains robust. U.S. spot Solana exchange-traded funds (ETFs) recorded $41.08 million in net inflows last week, marking the eighth consecutive week of positive flows. This sustained buying from institutional investors highlights growing confidence in SOL as an asset class within regulated financial products.
A major catalyst for the ecosystem is the integration with the X platform. X has rolled out a new feature called "Smart Cashtags," which allows users to tag financial assets—including Solana-based tokens like $BONK—in their posts. The feature displays live price charts, market data, and related news directly within the social media interface. This integration is expected to increase visibility and engagement for Solana ecosystem tokens, positioning Solana as a key partner in X's ambition to become a comprehensive financial information platform.
On the development front, Solana launched a privacy-focused hackathon on Monday. The "Privacy Hack" event offers $75,000 in total rewards across three categories: private payments, launchpad projects, and an open track for other privacy-focused applications. Submissions close on February 1, with winners announced on February 10. The initiative aims to bring enhanced privacy capabilities to the Solana network.
Derivatives market activity reflects bullish sentiment. SOL futures open interest increased by 4.90% in the past 24 hours to $8.58 billion. The long-to-short ratio reached 1.0235, indicating a slight majority of traders hold long positions. Notably, short liquidations totaled $12.61 million over 24 hours, significantly outpacing long liquidations of $2.14 million, suggesting bearish positions were forced to close as prices rose.
Technical indicators support the positive outlook. SOL is trading above the R1 Pivot Point at $142. The Supertrend indicator has crossed into bullish territory, generating a buy signal. The Relative Strength Index (RSI) sits at 63, indicating building buying pressure, while the Moving Average Convergence Divergence (MACD) indicator and its histogram are rising above the zero line.
