Solana is extending a powerful weekly rally, climbing more than 19% as improved liquidity expectations and stronger institutional demand support the broader cryptocurrency market.
$SOL reached an intraday high of $91.0 on Friday and was trading around $90.90, placing it near a critical technical resistance level that could determine whether the rally continues.
The token’s advance follows a US Treasury announcement expanding debt buyback operations, while fresh inflows into Solana exchange-traded funds point to growing interest from institutional investors.
Treasury buyback expansion boosts Solana and wider crypto market
The US Treasury Department announced plans Wednesday to increase certain buyback operations aimed at improving liquidity in the market for longer-dated Treasury securities.
The Treasury will raise the size of liquidity-support buybacks for longer-dated nominal coupon securities from $2 billion to at least $4 billion per operation.
The move helped ease concerns about market liquidity and increased investor appetite for risk-sensitive assets, including cryptocurrencies.
Solana jumped more than 10% on Wednesday as the announcement contributed to a broader short squeeze across the crypto market.
The rally continued through Friday, with $SOL briefly climbing above $90 before facing resistance near its 200-day exponential moving average.
Institutional demand has also strengthened during Solana’s latest advance.
Data from CoinGlass showed that spot Solana ETFs attracted $14.60 million in net inflows on Thursday, marking their largest single-day intake since the end of July.
The inflow also represented the third consecutive day of positive ETF flows this week.
Sustained demand for Solana investment products could provide additional support if institutional buyers continue increasing their exposure.
However, a slowdown in ETF inflows could reduce one of the key sources of momentum supporting $SOL’s recent recovery.
$SOL faces crucial resistance at the 200-day EMA
Solana was trading around $90.90 on Friday, just above its 200-day exponential moving average at $89.28.
The 200-day EMA represents an important long-term trend indicator and currently serves as immediate resistance.
A sustained move above that level could strengthen the bullish outlook and open the door to the next major resistance area near $96.19.
Reaching $96.19 from $89.14 would represent an additional gain of approximately 7.9%.
$SOL remains comfortably above its shorter-term moving averages, with the 50-day EMA at $76.91 and the 100-day EMA at $78.63.
That positioning reinforces the near-term bullish structure, although buyers still need to establish a decisive break above the 200-day EMA.
Despite the strong price action, some technical indicators suggest Solana’s rally may be becoming stretched.
The relative strength index is near 79, placing it firmly in overbought territory and increasing the possibility of a short-term pullback or consolidation.
Meanwhile, the moving average convergence divergence remains strongly positive, indicating that bullish momentum is still intact.
If $SOL stays above the $89.28 level, support could emerge around the 100-day EMA at $78.63, followed by the horizontal support zone near $77.07 and the 50-day EMA at $76.91.
A deeper correction could expose the former rising trendline near $74.38.
For now, traders are likely to focus on whether Solana can secure a sustained close above its 200-day EMA, a move that could bring the $96.19 resistance level into view.
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