Solana Price Eyes $130 Rebound as Stablecoin Inflows Hit $1.3B

Key Insights:

• Solana tops stablecoin inflows with $1.3 billion weekly gain.
• Solana price is looking for a recovery following poor institutional interest among ETFs.
• Technical charts indicate a Solana USD price consolidation between $120 and $130.

Solana price is aiming for a rebound toward the $130 mark as stablecoin inflows climb to $1.3 billion. SOL USD traded just above $120 at press time, reflecting a 3% daily drop and an 8% decline over the week.

However, institutional interest is fading. US spot SOL ETFs reported only $9.57 million in inflows last week, the lowest in recent records. Although the trend is under pressure, increased flows of stablecoins may help the Solana altcoin reach the $130 level in the short term.

The broader crypto market dropped 0.98% over the last 24 hours. Regulatory issues and a liquidation of leveraged positions affected the market.

Bitcoin is stuck at less than $88,000, and Ethereum is at less than $3,000, and both are weak. The 24-hour trading volume of Solana increased 278.83% to $6.35 billion. That indicates the possibility of a turnaround.

Solana Dominates Weekly Stablecoin Inflows, While ETH Sees Massive Outflows

This week, Solana has led the pack with a net change of $1.3 billion in stablecoin inflows. The performance makes it the leading blockchain regarding stablecoin activity within the past seven days.

As per recent data by Artemis, the only company to record such a great positive net change was Solana. Other competing chains like Tron, BNB Chain, and OP Mainnet registered much smaller movements in comparison.

At the same time, Ethereum registered a sharp outflow of $3.4 billion and became the highest in the rankings. This major drop shows that a lot of capital has been pulled out of the Ethereum network over the same time frame.

Solana outperformed other chains such as Ripple, Polygon PoS, Aptos, and Arbitrum, which had mixed results but were still much behind Solana in terms of stablecoin growth. All these networks never even hit the billion-dollar mark in any direction.

Solana Leads in Revenue and DEX Activity Amid ETF Inflows

The relative performance of Solana price was in relation to the volume and seven-day revenue of decentralized exchanges (DEX), compared to other blockchains (Layer 1 and Layer 2). This achievement is a restatement of its increasing control in the blockchain ecosystem.

However, the exchange-traded funds (ETFs) market shows a different situation from other significant cryptocurrencies. The net inflow of Solana spot ETFs is also a positive sign that investors are becoming more confident in the network, as the net inflow of the funds has been at $9.57 million.

Could Solana Price Rebound to $130?

Solana USD price stood at 122.51 at the time of writing, with a minor decline of -0.31 in the past 4 hours. After a steady decline from highs above $130, SOL price recently tested the $120 support zone.

The Relative Strength Index (RSI) of the 4-hour chart is 38.49, which is slightly above the oversold area. It is a slight recovery effort, though it is below the neutral 50 level.

The MACD remains bearish. The MACD line is lower compared to the signal line, and the bars of the histogram are starting to indicate light positive momentum. The bearish crossover remains intact, although there is a slight indication of the lack of pressure to the downside.

The recent price action of Solana USD suggests a potential short-term consolidation between $120 and $130. To target $140, the bulls will have to break and hold above $130, which could once again signal a bullish trend. But below $120, there is the potential to rush the downside to $112.