Solana staged a significant rally on Wednesday, decisively breaking through the critical $140 level following a week of consolidation. This move signals a potential resurgence of bullish momentum for the cryptocurrency. The key question for market participants is whether this represents a mere technical rebound or the start of a more durable upward trend.
Technical Landscape Points to Further Gains
From a charting perspective, Solana appears to have established a potential double-bottom pattern around the $123 region. The successful breach above $140 has now set the stage for a test of the 50-day Exponential Moving Average, which currently resides near $157 to $158.
The $144 level is now viewed as a crucial threshold. A confirmed daily close above this price could accelerate momentum toward the $160 zone. Conversely, a drop back below $135 would suggest the rally lacks the necessary underlying spot market demand to sustain itself. With Futures Open Interest standing at $7.26 billion, volatility is expected to remain elevated, especially as traders await upcoming interest rate signals from the U.S. Federal Reserve.
Institutional Capital Flows Fuel the Rally
A primary catalyst behind the recent price surge has been substantial inflows into Solana-focused exchange-traded funds (ETFs). After a brief period of outflows, spot ETFs recorded net inflows of $45.7 million on December 2nd and 3rd alone. This brings the cumulative volume for these products to approximately $651 million.
Notable developments in this space include:
* Bitwise (BSOL) continues to lead the field, having attracted over $574 million in total inflows.
* Franklin Templeton commenced trading of its Franklin Solana ETF (SOEZ) on the NYSE Arca exchange.
* Vanguard has begun allowing eligible clients access to certain cryptocurrency ETFs—a move that could significantly broaden the investor base for assets like SOL.
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This renewed institutional demand has propelled Solana upward from its lows near $123, shifting the broader market structure to a more bullish footing.
High-Profile Endorsement Adds to Momentum
The market received additional support from prominent investor Anthony Scaramucci, founder of SkyBridge Capital. In a CNBC interview, he labeled Solana a “major winner” in the emerging race to tokenize real-world assets. He drew a parallel between the current blockchain ecosystem and the early days of cloud computing.
Scaramucci confirmed that SkyBridge maintains a core position in SOL, citing the network’s high transaction speed and low latency as indispensable qualities for the future of financial infrastructure. “Solana is on track to become the global standard for tokenized real-world assets,” the investor predicted.
On-Chain Metrics Present a Nuanced Picture
While the price action is positive, fundamental network data reveals a more mixed situation:
* Total Value Locked (TVL): Has climbed to $9.01 billion, marking a 9 percent increase within 24 hours.
* Stablecoin Liquidity: Remains robust for DeFi protocols, with the aggregate market capitalization of stablecoins on Solana at $15.18 billion.
* Active Addresses: Present a contrasting signal; the figure of roughly 3.3 million active addresses represents a 12-month low for user activity.
This divergence indicates that the current upward move is likely being driven more by institutional capital and large investors rather than a broad resurgence of retail participation.
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