Key Insights
- Solana price has rebounded in the past few weeks.
- Data shows that SOL ETF inflows have continued soaring.
- Solana will implement the Alpenglow upgrade in Q1.
Solana price crawled back in the past few days as Bitcoin and most altcoins rebounded at the start of the year. The SOL token rose to a high of $133, up slightly from its December low of $117. So, what is next for Solana as the net assets in SOL ETFs hit $1.02 billion?
Solana ETF Inflows Have Continued
SOL price may continue rising in the coming weeks as demand for its ETFs remains. Data compiled by SoSoValue shows that the cumulative inflows rose to $774.7 million, bringing the total net assets to over $1.02 billion. This makes it the fourth token to reach this milestone, following Bitcoin, Ethereum, and XRP.
Notably, Solana ETFs have had only one day of outflows since their approval in October last year. Their monthly inflow stood at $200 million in October, followed by $419 million and $147 million in the following two months.
Bitwise continues to lead in terms of Solana ETFs with $681 million in assets followed by Grayscale’s, Fidelity’s, VanEck’s, and 21Shares, which have $170 million, $125 million, $26 million, and $6 million, respectively.
Demand for Solana ETFs has remained resilient, even as investors scaled back their Bitcoin and Ethereum holdings. Bitcoin ETFs experienced outflows of over $3.4 million and $1 billion in November and December, respectively, while Ethereum funds saw outflows of $1.4 billion and $616 million during the same period.
Alpenglow Upgrade Could be a Catalyst
Another potential catalyst for Solana’s price is the upcoming Alpenglow upgrade, which is scheduled to occur in the current quarter. This will be a major development that will change how the network operates. It will also make it a more viable alternative to Ethereum, a network that has maintained its market share in areas like decentralized finance (DeFi) and real-world asset (RWA) tokenization.
Alpenglow will introduce ultra-fast speeds, with the finality moving from 12.8 seconds to between 100 and 150 milliseconds. It will also introduce new consensus components known as a votor and rotor. Votor will focus on deterministic voting while Rotor will introduce block propagation.
Additionally, Alpenglow will integrate with Firedancer, the recently launched independent validator client for Solana.
Growing Network Metrics May Support SOL Price
Meanwhile, despite its challenges, third-party data shows that Solana’s ecosystem is doing well. Nansen data reveals that the network processed nearly 2 billion transactions in the last 30 days, significantly higher than other popular chains, including Ethereum, BNB Smart Chain, and Base, combined.
Additional metrics show that DEX protocols in Solana handled more volume than those in Ethereum and BSC Chain, combined. Solana processed volume worth over $101 billion, while Ethereum and Solana’s volumes were $44 billion and $56 billion, respectively.
Most of these fees were on DEX protocols like Meteora, Pump, Jupiter, and Raydium.
Solana Price Technical Analysis
The daily chart indicates that the SOL price bottomed at $117 in December and has since begun moving upward. It is attempting to move above the descending channel that connects the highest swings since November 12 last year.
Solana is also attempting to flip the Supertrend indicator from red to green, which would be a highly bullish sign. The Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have continued to rise, indicating that a bullish divergence pattern is forming.
Therefore, the token will likely rebound as bulls target the resistance level at $150. This view will be confirmed if the coin successfully flips the Supertrend indicator from red to green.
Summary
The Solana price has been in a strong bearish trend over the past few months, as the crypto market crash intensified. This retreat may be nearing its end as the accumulation phase continues and investors anticipate the upcoming Alpenglow upgrade, which will make it faster. However, any rebound will depend on the general performance of the crypto market.
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