Amid forceful institutional demand and regulatory clarity from U.S. authorities, the analyst suggested that Solana (SOL) could potentially break a key psychological barrier for the first time in a month.
Clear sky in front of Solana
Solana has posted remarkable performance over the past week, jumping 22% from its March lows and breaking out of a multi-week consolidation range. For the past month and a half, the cryptocurrency has been oscillating between $77 and $92, although despite many attempts it has failed to break above the upper zone of this range.
Following a recent rebound in the cryptocurrency market, the altcoin hit a monthly high of $97 earlier this week before falling to $90 on Wednesday. Following these results, analyst Ali Martinez reported that SOL recently issued a key bullish signal for the first time since January, suggesting an augment in relief is coming.
He explained that the SuperTrend indicator, which is used to identify the current market trend, turned bullish on the daily chart, moving from Sell to Buy. Moreover, the market observer noted that there is little resistance to the psychological barrier of $100, which signals a potential breakout towards $115.
The post shows that the UTXO Realized Price Distribution (URPD) indicator shows that a “solid demand floor” has been established between $85.55 and $82.60, with 76 million SOL tokens transacted.
“This 38-day accumulation phase has effectively exhausted sell-side liquidity. Without significant supply barriers on the horizontal profile, Solana has a clear path towards the $100 psychological level and then the $115 liquidity cluster,” he detailed, adding that the “ceiling” is much thinner than the current low.
Martinez he emphasized that if Solana maintains the 39-day distribution zone that has turned into a structural floor around the $93 area, a bull market could happen “much sooner than people think.”
Institutional demand, regulatory transparency SOL fuel
SOL’s expected recovery comes as Solana Exchange-Traded Fund (ETF) spot funds post their biggest one-day gain in two weeks and best weekly gain since the mid-January market crash.
According to SoSoValue dataOn March 17, $17.81 million flowed into this category, the highest single-day net flow since the beginning of the month, suggesting forceful institutional demand.
Meanwhile, SOL-based funds posted a five-week positive streak despite market volatility, largely driven by geopolitical tensions. As noted in the report, the Solana Spot ETFs saw cumulative net inflows of $989.3 million with a forceful “nearly $1 billion milestone.”
Moreover, U.S. regulators recently shared long-overdue clarity on how federal securities laws apply to many crypto assets, resolving years of regulatory confusion.
On Tuesday, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued joint guidance aimed at providing clearer rules for market participants, officially confirming that most crypto assets including Solana, Cardano and XRP are digital commodities and not securities, joining Bitcoin and Ethereum in this classification.
At the time of writing, Solana is trading at $90, up 6.4% on the monthly time frame.
Featured image from Unsplash.com, chart from TradingView.com
