Solana (SOL) is rising again thanks to stable demand from retail investors and institutions – will it challenge the $200 mark?

The price of Solana (SOL) recorded an increase of nearly 2% at the time of writing on Monday, extending a rise of more than 4% from the previous day. The recovery from the psychological level of 150 USD reflects strong demand, bolstered by a steady net inflow into Solana ETF funds in America.

At the same time, the interest of individual investors in Solana futures contracts is increasing, suggesting that the upward momentum may continue. However, technical analysis warns that the previous support zone has now turned into resistance, creating a significant barrier that could slow down SOL's progress.

New demand from individual investors and the stability from the institutions backing Solana

The Solana spot ETF funds in America have just recorded the ninth consecutive day of net inflows, with a total of 136.5 million USD last week, signaling positive support for SOL prices. This strong increase in ETF inflows is becoming an important support, reflecting the growing appeal of Solana to investors.

The recent recovery of the broader cryptocurrency market has also been driven by hopes that America will soon end the government shutdown, as the Senate has passed a temporary funding bill with a 60-40 vote, paving the way for the House to approve it before the President signs it into law.

However, despite the positive capital flow, the scale of the daily net capital flow is trending downwards, warning that demand from institutional investors may be facing risks.

The SOL ETF spot data of America | Source: SosovalueIn the derivatives market, Solana also recorded an inflow of capital due to the recovery trend. Data from CoinGlass shows that the open interest (OI) of the SOL futures contracts increased by 3.47% in 24 hours, reaching 7.80 billion USD, reflecting that traders are opening new long positions or increasing leverage.

Notably, the Short positions liquidated amounted to 9.70 million USD during the same period, surpassing the Long liquidations of only 2.23 million USD, indicating that the market is eliminating a significant portion of Short positions, reinforcing a positive sentiment.

SOL derivative data | Source: CoinGlass## Technical outlook: Can Solana recover to 200 USD?

Solana has just recorded the second consecutive bullish candle on the daily chart, extending the recovery from the support zone of 155 USD on Sunday. SOL is aiming to challenge the previously broken trendline and the resistance zone around 175 USD, which was an important observation point last week.

A sustainable uptrend beyond this level could pave the way for SOL to the 200-day exponential moving average (EMA) at 185 USD, before advancing to the psychological mark of 200 USD.

The daily SOL/USDT chart | Source: TradingViewThe technical indicators on the daily chart are supporting a recovery trend. The Relative Strength Index (RSI) has risen to 41 from the oversold region, indicating that selling pressure is easing. At the same time, the MACD indicator is approaching the signal line, preparing for a potential crossover that could confirm a return to an upward trend.

However, if SOL loses momentum midway, the support area of 155 USD will be a point to monitor closely, as any break here could reverse the short-term upward trend.

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