Solana Price Forecast: Strong institutional confidence keeps SOL afloat above $100

Solana (SOL) price is trading around $100 on Monday, testing the psychological support level after a 3% decline the previous day. SOL-focused Exchange Traded Funds (ETFs) recorded over $150 million in inflows last week, reflecting strong institutional demand. Solana risks capitulation as price tests the $100 threshold amid easing bullish momentum.

ETF inflows, double disinflation projects long-term growth

Solana is gaining institutional strength amid major governance updates. SOL-focused ETFs recorded $153.87 million in inflows last week, with nine consecutive days of inflows. Typically, strong ETF inflows project long-term growth, fueling demand from large-wallet and retail investors amid growing risk appetite.

On the network side, Solana validators voted to double the disinflation rate to 30% and establish a new governance framework. However, the proposal to introduce usage-based fees, which could have raised daily SOL burns to almost 9,000 tokens, failed. Overall, the governance votes favored better structuring and disinflation to promote long-term growth. 

Technical outlook: Will SOL price sustain above $100?

Solana trades around $101.59 at press time on Monday, maintaining a constructive bullish bias. SOL holds above the 50-day Exponential Moving Average (EMA) at $85.05, the 100-day EMA at $82.77, and the 200-day EMA at $89.71, all of which sit below the market, hinting at a well-supported uptrend structure.

Momentum remains firm, with the Relative Strength Index (RSI) down to 67 on the daily chart from overbought conditions, showing easing buying pressure. At the same time, the Moving Average Convergence Divergence (MACD) edges lower toward the signal line, reaffirming reduced buying pressure.

On the topside, the next notable hurdle is the December 18 low at $116.88, which represents a significant structural barrier to any extended rally.

On the downside, immediate technical support is at the February 1 low of $98.02, followed by the 200-day EMA at $89.71 and the 50-day EMA at $85.05.

(The technical analysis of this story was written with the help of an AI tool. Know more.)