Last Updated on 21/08/2026
Solana (SOL) extended its strong weekly rally on Friday, gaining more than 19% so far this week and trading near the key 200-day Exponential Moving Average (EMA) at $89. A sustained breakout above this resistance could reinforce the bullish outlook and pave the way for further upside.
The latest gains have been supported by improving liquidity conditions following the US Treasury’s decision to expand its debt buyback operations. At the same time, institutional demand for Solana has strengthened, with US-listed spot SOL ETFs attracting $14.58 million in net inflows on Thursday, their strongest single-day inflow since late July.
Improving Liquidity Conditions Support Solana
The US Treasury announced on Wednesday that it would double the size of certain debt buyback operations designed to improve liquidity in the longer-dated Treasury market.
According to Reuters, the Treasury plans to increase liquidity-support buybacks for longer-dated nominal coupon securities from $2 billion to at least $4 billion per operation.
The larger buyback program helped ease concerns over market liquidity and encouraged greater risk appetite across financial markets. It also contributed to a short squeeze in cryptocurrencies, with SOL jumping more than 10% on Wednesday before extending its advance to a Friday high of $90.20.
Institutional Demand for SOL Strengthens
Institutional interest in Solana has also picked up this week. Data from SoSoValue showed that US-listed spot SOL ETFs attracted $14.58 million in net inflows on Thursday, marking the strongest single-day inflow since the end of July.
Thursday also marked the third consecutive session of positive ETF flows this week. If institutional inflows continue to increase, they could provide an additional catalyst for SOL and support further price gains.
Solana Price Forecast: 200-Day EMA Remains Key Resistance
Solana was trading around $89.14 on Friday, maintaining a bullish short-term structure as the price remained comfortably above the 50-day and 100-day EMAs at $76.91 and $78.63, respectively.
However, SOL is currently testing the 200-day EMA at $89.28, which represents an important resistance level. The indicator could limit the upside during the initial breakout attempt.
Momentum indicators remain bullish but increasingly stretched. The Relative Strength Index (RSI) is near 79, placing it in overbought territory, while the Moving Average Convergence Divergence (MACD) remains firmly positive. Together, these signals point to strong upward momentum, although the recent rally may leave SOL vulnerable to short-term consolidation or profit-taking.
On the downside, the first important support zone is around $77.07, supported by the 100-day EMA at $78.63 and the 50-day EMA at $76.91. A deeper correction could bring the broken ascending trendline near $74.38 into focus as the next major demand area.
On the upside, a sustained daily close above the 200-day EMA at $89.28 could strengthen the bullish setup and expose the next resistance near $96.19. This level may attract selling pressure following SOL’s sharp recent advance.
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