Solana has surged above key resistance, reclaiming critical technical levels as trading activity spikes. The altcoin broke out of its consolidation phase, successfully converting the $90 level into support and reaching a monthly high of $94.2 before a slight retracement. Increased market participation was evident, with daily volume climbing over 102% to reach $4.37 billion. Simultaneously, derivatives data showed a significant rise in speculative interest and capital inflows, signaling a return of risk appetite among traders.
Solana broke out of its consolidation range after successfully flipping $90 into support. The altcoin jumped to a monthly high of $94.2 before experiencing a slight retracement.
As of the latest data, Solana [SOL] traded at $94.13, up 6.38% on the daily charts. In doing so, Solana flipped its EMA20 and was testing the EMA50 at $94 at the same time.
Over the same window, volume climbed 102% to $4.37 billion, indicating increased market participation. These moves indicated strengthening upward momentum as bulls gained ground.
Solana has recently seen significant demand across all market participants, with many perceiving prevailing conditions as perfect entry points. This sentiment is extremely prevalent on the derivatives market, as traders have shown increased risk appetite.
According to DeFiLlama data, Perps Volume recovered from a $280 million slip to surpass $600 million. Perpetual’s trading volume rose by over $300 million in two days, indicating increased speculation as traders aggressively positioned.
On top of that, significant capital flowed into futures, as Futures Inflow jumped to $2.48 billion while outflow rose to $2.2 billion. As a result, Futures Netflow surged 983% to $255 million.
Data from CoinGlass showed these futures inflows. With Perps volume and futures inflows rising in tandem, this suggested heightened speculative activity as traders deployed more capital.
On the Spot side, buyers have dominated the market over the past 30 days. As such, buyers have established a strong demand zone between $86 and $91.
The Spot Taker CVD data from CryptoQuant showed that buyers have largely remained active during the prolonged period of weakness. On Binance in particular, buyers have significantly increased their accumulation.
Over the past month, SOL recorded more than 206 million in buy volume, a trend that continued. On the 16th of March, the altcoin saw $5.4 million in buy volume on Binance, indicating strong demand.
In fact, data from Coinalyze showed over $300 million flowed out of exchanges over the past 24 hours, a clear sign of aggressive spot accumulation.
Solana’s upside momentum strengthened as traders across the market stepped in amid broader improvements in sentiment. For that reason, the altcoins’ RSI Cyclic Smoothed jumped above its Highband and rose to 62.
A jump above these levels signaled the buyer’s commanding dominance in the market. At the same time, SOL jumped above its short-term moving average EMA20, further validating the trend’s strength.
Usually, these market conditions point towards a potential trend continuation. If demand holds, SOL could successfully retest EMA50 and eye a move above the key resistance of $100.
