SOL price drifted higher and neared the critical $200 resistance as Staking Solana ETF inflows continued to rise.
Summary
- Solana price has bounced back from its lowest level this month.
- The staking Solana ETF is continuing to have robust inflows.
- Its assets under management have jumped to over $400 million.
Solana (SOL) token jumped to $195 today, Oct. 25, up by 12% from its lowest point this month. Its market capitalization was over $105 billion.
Data compiled by ETF.com shows that the REX-Osprey Staking Solana ETF has only experienced outflows in one week since its inception in August this year.
SSK ETF had net inflows of $24 million this week, up from $14.5 million in the previous week. This growth has brought its assets under management to over $400 million, making it one of the biggest altcoin ETFs on Wall Street.
The continued inflows, especially during a crypto bear market, is a sign that American institutional investors are interested in altcoin ETFs. Some see them as viable liquid alternative assets.
Its growth is also a sign that the mainstream Solana ETFs filed by companies like VanEck, 21Shares, Grayscale, Fidelity, and Fidelity will have demand. JPMorgan analysts believe that these funds will attract over $6 billion in inflows in the first year.
The SSK ETF has an expense ratio of 0.75%, which is higher than the future Solana ETFs. However, its main benefit is that it distributes all its staking revenue to investors.
Solana’s network is doing well in other areas. For example, the stablecoin supply has jumped by 14% in the last 30 days to $15.6 billion, while the adjusted transaction volume soared by 55% to $48 billion.
Solana is also the second-biggest player in the decentralized exchange industry, with its top protocols handling over $140 billion in volume in the last 30 days. Ethereum protocols processed $148 billion in the same period.
SOL price technical analysis
The daily chart shows that the Solana price bottomed at $94.70 in April and then rebounded to a high of $252 on Sept. 8, only to plunge to $178 as trade tensions between the U.S. and China escalated.
It remains above the ascending trendline connecting the lows in April, June, and October. Not only that, it has formed a small triple-bottom pattern, which often leads to a bullish breakout.
Therefore, the most likely Solana price forecast is bullish, with the next target being the key resistance at $205, its highest point in July this year. A move above that level will signal further gains, potentially to the September high of $253. A drop below the ascending trendline will invalidate the bullish view.
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