On Wednesday, June 9th, the crypto market witnessed a sharp inflow, which pushed the pioneer cryptocurrency Bitcoin to the all-time high resistance of $112,000. The bullish momentum spread to the altcoin market, including SOL, as it bounced 3.14% to trade at $156. However, the growth in Solana coin is also supported by significant capital flow in its associated ETFs and the formation of a bullish chart pattern.
Solana-based ETFs See Soaring Demand on Wall Street
For over a week, the Solana price showcased a sideways trend, confined within the $158 to $144.85 price level. While this consolidation may discourage retail investors, the Solana-lined exchange-traded funds (ETFs) are quietly staging a strong performance on Wall Street.
According to Bloomberg ETF Analyst Eric Balchunas, the newly launched REX-Osprey SOL + Staking ETF (SSK) pulled a $20 million inflow yesterday and is now managing $41.94 million in assets. The dramatic rise places the SSK ETF ahead of the Solana ETF (SOLZ) but still behind the current leader, Volatility Shares’ 2x Solana ETF (SOLT), which holds $64.46 million in assets.
Since last month, these ETFs have collectively drawn in $80 million in inflows and now hold over $130 million in assets under management, signaling accelerating adoption and growing investor confidence in Solana.
More inflow means fund managers need to purchase actual SOL tokens to back these products, thus creating real demand in the spot market.
SOL Price Rally to Face Major Resistance
The Solana analysis of the four-hour chart reveals the formation of a bullish continuation pattern known as a pennant. The chart setup is characterized by a long ascending trendline, which denotes the dominating trend in price, followed by a short pullback within two converging trendlines.
With today’s jump, the coin price has given a massive breakout from the pattern’s resistance trendline, currently trading at $167. The strong momentum lifted the exponential moving average (20, 50, and 100), reinforcing the growing sentiment in the market.
However, the SOL price is just 1% away from challenging the multi-month resistance of $158.8. It is expected that the coin price will consolidate below this resistance to recuperate the bullish momentum for the next breakout. The $155.5 and $153.60 would be the reliable support amid the potential pullback.
That said, a bullish breakout from the $1.58 barrier would accelerate the bullish momentum and signal a major change in market dynamics.
Also Read: Bitcoin Poised for Breakout as Whales Absorb Weak Hands’ Supply
