Meme mania, ETF inflows power 86% rally

Solana is riding a double wave of momentum, from Wall Street and the meme coin crowd.

As the newly launched REX-Osprey SOL + Staking ETF (SSK) nears $100 million in assets and offers rare staking rewards, institutional interest is heating up. Add in a meme-fueled rally and bullish technicals, and it’s no wonder SOL just hit a multi-month high.

Solana’s price jumped above a crucial resistance point and moved to a high of $185, its highest level since May 27. It has jumped by over 86% from its lowest level this year. 

Data shows that the REX-Osprey SOL + Staking ETF has had inflows in all weeks since its launch, and now holds $99.7 million in assets. If this trend continues, the fund will likely cross the $100 milestone this week.

The SSK ETF is unique in that it allows investors to participate in Solana’s jump and also earn passive returns in the form of staking rewards. Data shows that staked Solana yields an annual return of approximately 7.5%, making it an ideal investment for dividend-focused investors. 

SSK has invested 58% of its funds in Solana and 41% in the 21Shares Solana Staking ETP, which is listed in Europe. The remainder of the portfolio consists of cash and government bonds. 

The SSK ETF provides an early and better way for American institutions to invest in Solana. While it is expensive than the proposed Solana ETFs, the costs is offset by the fact that it allows investors to make monthly staking payouts. 

Unless the SEC changes its mind, likely, funds from companies like Franklin Templeton and 21Shares will not include staking features. In this case, investors who invest directly in Solana will likely outperform those who purchase its ETFs.

Solana price also jumped as most meme coins in its ecosystem soared, pushing their market cap to $15 billion.

SOL price technical analysis

The daily chart shows that the price has been in a bull run, and most recently, it jumped above the upper side of the symmetrical triangle pattern. 

The Solana price is also poised to form a golden cross, as the gap between the 50-day and 200-day moving averages narrows. A golden cross is one of the most bullish continuation patterns in technical analysis. 

The Relative Strength Index and the MACD indicators are all pointing upwards. Therefore, the token will likely continue rising as bulls target the key resistance at $200.