TLDR
- Solana has seen over $120 million in liquidity bridged from other blockchains in the past 30 days
- SOL is forming an inverse head and shoulders pattern with a potential 40% upside toward $190
- Canada launched the first spot Solana ETFs in North America on April 16, 2025
- Technical data shows SOL must close above $147 for a bullish trend shift
- Recent memecoin rallies on Solana have coincided with the return of liquidity to the network
Solana has experienced a surge in network inflows over the past month, with more than $120 million in liquidity bridged from competing blockchains. This development, paired with Canada’s recent launch of the first spot Solana ETFs in North America, has sparked renewed interest in SOL’s price potential.
Data from Debridge shows that in the last 30 days, traders transferred $41.5 million from Ethereum, making it the largest source of inflows to Solana. Arbitrum followed closely with $37.3 million in transfers.
Users on Base, BNB Chain, and Sonic also moved substantial amounts to the Solana network, with $16 million, $14 million, and $6.6 million respectively.
This influx of liquidity marks a turnaround from Solana’s recent challenges. Following Argentina’s LIBRA memecoin scandal involving President Javier Milei, Solana had previously seen $485 million move to other blockchains like Ethereum and BNB Chain.
The current return of funds to Solana has coincided with strong performance from memecoins on the network. Over the past week, POPCAT rose 79%, FARTCOIN increased by 51%, BONK gained 25%, and WIF added 21%.
Technical Analysis Shows Mixed Signals
From a technical standpoint, Solana’s price action presents a complex picture. On the daily chart, SOL remains in a bearish trend and must close above $147 to signal a bullish shift.
The 50-day exponential moving average continues to act as strong resistance around the $140 level, with SOL struggling to maintain momentum at current prices.
On shorter timeframes, a bearish divergence has formed between price and the relative strength index (RSI), which has historically preceded corrections for SOL in 2025. The cryptocurrency has experienced four such divergences since January, each followed by a price decline.
However, some analysts see a more positive setup forming. SOL’s 4-hour chart shows what appears to be an inverse head and shoulders pattern, which typically signals a trend reversal. If confirmed, this pattern suggests a potential upside target near $190, representing a 40% gain from the neckline resistance.
Supporting this bullish case, SOL has reclaimed its 200-period exponential moving average as support on the 4-hour chart, with momentum gradually building.
Canada Leads with Spot Solana ETFs
On April 16, Canada became the first country in North America to launch spot Solana ETFs, potentially opening the door to increased institutional investment in SOL.
Four financial firms â 3iQ Corp., Evolve Funds, CI GAM, and Purpose Investments â launched their ETFs on the Toronto Stock Exchange following approval from the Ontario Securities Commission.
“We are very proud and excited that Canada is [a leader] again in crypto,” said Vlad Tasevski, chief innovation officer at Purpose Investments.
These Canadian ETFs differ from existing U.S. offerings in a crucial way. While U.S. products only track Solana futures, the Canadian ETFs provide investors with direct exposure to SOL’s spot price, similar to how Canada pioneered spot Bitcoin and Ethereum ETFs in 2021.
The launch of these spot ETFs could help drive institutional adoption and bring new capital into the Solana ecosystem.
Despite the positive developments with ETFs and network inflows, Solana’s on-chain metrics show mixed signals. Total generated fees for March came in just under $46 million, far below the peak of over $400 million seen in January 2025.
For April, the month-to-date total stands at approximately $22 million, suggesting that network activity has not yet returned to previous highs.
Recent data from Glassnode revealed a new potential support level around $130, with over 32 million SOL (about 5% of the total supply) purchased at this price in recent days.
The analysis suggests that $144 could act as resistance while $117 might serve as the lower bound of the price range, with $130 functioning as the key pivot zone in the short term.
As Solana navigates these mixed signals, traders and investors are watching closely to see if the positive developments in liquidity and ETF launches will be enough to overcome the technical resistance and drive SOL to new heights.
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