Solana (SOL) rebounds thanks to increased demand from ETFs and the derivatives market

Solana (SOL) surged above the $140 threshold as recorded on Wednesday, rising more than 10% in just 24 hours following news that Vanguard launched cryptocurrency exchange-traded funds (ETF), including a Solana ETF. This strong and unexpected rebound quickly ignited risk appetite in the Solana derivatives market, as investors anticipated the uptrend would continue.

From a technical perspective, SOL’s outlook is focused on the scenario of completing a double bottom pattern, with the short-term target heading toward the 50-day exponential moving average (EMA).

Demand for Solana Returns Strongly Across All Fronts

Vanguard’s cryptocurrency ETFs, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Ripple (XRP), are “sparking” a wave of excitement in the crypto market. Solana stands out with the strong return of institutional capital, as net inflows reached $45.77 million on Tuesday, completely reversing from a net outflow of $13.55 million the previous day. Historically, strong ETF inflows are a positive signal, indicating the potential for continued recovery and bolstering investor confidence.

Solana ETF data | Source: SosovalueAlong with the appeal from institutional players, the Solana derivatives market also recorded increased risk appetite, as investors bet on the next leg of the recovery. Data from CoinGlass shows Solana futures open interest (OI) reached $7.26 billion, up 6.75% in just 24 hours, reflecting the growing amount of risk capital.

Solana derivatives data | Source: CoinGlassOn a more positive note, on-chain data shows Solana’s usage continues to expand, with total value locked (TVL) rising 9.33% in 24 hours to $9.013 billion. The increase in TVL indicates that deposits on the blockchain are rising, proving Solana’s activity and application are thriving.

Not only that, stablecoin liquidity on Solana also recorded an impressive increase of over 13% in the past week, reaching $15.181 billion, reflecting rising vibrancy and user confidence.

Solana DeFi statistics | Source: DeFiLlama## Technical Outlook: Is Solana Ready for a Breakout?

Solana has just bounced back from the $126 support zone—which has held since the June 22 low—and avoided closing below this level. This recovery also formed a double bottom pattern, with the (neckline) near $145, close to the November 20 high.

If SOL confirms a close above $145, the opportunity for the uptrend to extend will arise, with the next targets being the 50-day EMA around $158 and the 200-day EMA at $175.

SOL/USDT daily chart | Source: TradingViewThe daily RSI is at 48, reflecting a stable uptrend from the oversold region and showing that selling pressure is gradually decreasing. At the same time, the MACD also records a sustainable recovery, though still in negative territory.

Conversely, if SOL faces resistance at $145, the price could enter a consolidation phase, with the lower band fluctuating at $126.

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