Key Takeaways
Solana rallies past $200 as ETF buzz, Jito’s BAM rollout, and strong bid support elevate it into blue-chip territory. Key technical divergence in SOL/BTC and overbought RSI suggest underlying strength pointing to a sustained trend, not a speculative top.
After months of chop, Solana [SOL] just tagged $206 on the weekly wick, marking its highest level in nearly half a year, and is up 34% for July.
That’s 3x the monthly return of Bitcoin [BTC], though still trailing Ethereum [ETH], which ripped 47.5% over the same stretch. And yet, social volume’s popped off, jumping 62% as SOL reclaimed the $200 zone.
According to AMBCrypto, this sentiment shift isn’t just noise. SOL’s RSI just pushed past 80 for the first time since the Q1 2024 rally.
So rather than a short-lived spike, could Solana be entering a new phase in its market cycle?
Key technical divergences under focus
Notably, the SOL/BTC pair just tagged a local high with RSI breaching into overbought territory, marking levels last seen during the Q1 2024 top near the $200+ range.
While this setup typically hints at a possible mean reversion, the underlying divergence tells a different story.
With RSI stretching into overbought territory, it suggests sustained bullish momentum, supported by a solid bid floor rather than just speculative froth.
Source: TradingView (SOL/USDT)
Sure, a short-term pullback wouldn’t be surprising as the setup gets a bit overheated.
But with Solana’s bid stack reloading, any dip could get bought up quickly, flipping into a bullish retest. That makes this divergence worth watching.
On-chain signals are lining up too, hinting that $200 might not be the ceiling, but the base for Solana’s next leg.
ETF buzz, upgrades push Solana into blue-chip zone
Solana’s brief flip above Binance [BNB] to hit a $110 billion market cap and $206 price point marked a major structural milestone. It reinforced SOL’s deep bid-side strength despite the short-lived move.
In fact, according to MEXC’s Chief Analyst Shawn Young, this wasn’t just rotational capital. Instead, it was driven by ETF anticipation and long-horizon positioning.
With over $73 million in pre-ETF inflows and nearly 3 million SOL scooped up by corporate wallets in July alone, it’s clear the big players are circling.
On-chain momentum is ripping too. As can be seen on the chart above, xStocksFi pushed $293 million in tokenized stock volume in just a month, outpacing every other chain this year.
Add to that DeFi Dev Corp locking in nearly one million SOL on-chain after a $19 million raise, and you’ve got serious institutional validation stacking up fast.
Stack it all up, and it lines up with the broader technical divergence. As AMBCrypto notes, SOL’s reclaim of the $200 level is a structural confirmation of its bid-side strength and a potential shift in market regime.
