Solana (SOL) surges over 5%... aims to break $120 on project migration and ETF funds

▲ Solana (SOL)/ChatGPT generated image ©

Solana (SOL) surged over 5% in a single day, nearing a breakthrough of $115. Expectations for ecosystem expansion grew with ZetaChain's approval to migrate to Solana and the launch of a bridge connecting Injective. This, combined with inflows into Solana spot ETFs and the altcoin rotation, drove the upward trend.

According to cryptocurrency market data aggregator CoinMarketCap on September 21 (local time), Solana recorded a 5.35% increase in the past 24 hours, reaching $114.01, outperforming the overall cryptocurrency market's growth rate. The most direct driver of the surge was the news of ecosystem expansion, which came out consecutively on September 20-21. ZetaChain's proposal for Solana migration was approved with 99.4% in favor, and a bridge connecting Injective and Solana also went live, raising expectations for expanded interoperability between new tokens, users, and networks.

Institutional fund flows also supported the strength. Solana spot ETFs continued to see net inflows for 12 consecutive weeks, with $47.6 million recorded on September 18. Simultaneously, as CoinMarketCap's Altcoin Season Index rose to 50, there was a trend of funds moving from Bitcoin (BTC) to altcoins like SOL. It appears that ecosystem expansion, institutional demand, and overall market risk appetite pushed the price up simultaneously.

Technical trends are also bolstering the upward momentum. SOL is significantly above its 7-day Simple Moving Average (SMA) at $104.91, and its Relative Strength Index (RSI) recorded 63.94. The recent high of $115 is an immediate resistance level, and a decisive breakthrough of this level suggests a potential rise to the Fibonacci extension level of $120.25. Increased actual usage of the newly launched Injective bridge was also cited as an indicator to confirm further gains.

Conversely, to maintain the upward trend, it is crucial to defend the $110-$112 range as a support level. If $110 is lost, the $105-$107 range will emerge as the next support, and if even $105 breaks, the correction could deepen. 'Proposal 2,' which is expected to contain specific plans for ZetaChain's migration, and the usage metrics of the Injective bridge were also presented as variables to assess future ecosystem growth.

CoinMarketCap assessed that Solana is currently maintaining its upward momentum, driven by practical ecosystem expansion, institutional fund inflows, and the altcoin bull run. In the short term, defending $110 and breaking $115 are key. If the uptrend continues past $115, $120.25 is suggested as the next target, whereas a drop below $110 could indicate a shift from the recent rally to a correction phase.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*