Solana ETP flows top $500M, CME futures open interest soars: Are new SOL highs next?

Solana futures are experiencing significant momentum, largely driven by institutional activity, as CME open interest reached a record $2.16 billion. SOL's price jumped 23% to $235 from a recent low of $195, coinciding with increased institutional volumes ahead of the SEC's upcoming decision on SOL ETFs. In contrast, retail traders have been more cautious, with recent liquidations totaling $307 million instilling hesitance in the market. This caution is reflected in relatively flat open interest from retail traders on centralized exchanges. Institutional appetite is further evidenced by Solana ETPs surpassing $500 million in assets under management, driven by REXShares and Bitwise Solana Staking ETP. The short-term price outlook for SOL hinges on a potential retracement to areas around $218-$210, which would still support a bullish market structure. A move above $245-$250 could indicate strength, potentially driving prices toward previous all-time highs near $290. Overall, the current market dynamics suggest a transition from fear to cautious accumulation, led by institutional players. The lack of aggressive retail leverage could minimize downside risks from liquidations.

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