Solana (SOL) held firm in the mid-$85 range through mid-May, supported by over $1.1 billion in cumulative ETF inflows and growing anticipation for its Alpenglow network upgrade, showing relative strength even as Bitcoin slipped below $78,000.
Data from SoSoValue showed spot Solana ETFs attracting steady demand throughout May, recording $26.6 million in net inflows on May 11, followed by another $19.1 million on May 12. "Bitcoin has managed to hold above the $76K-$77K region after reclaiming the 200 EMA near $77.7K, helping stabilize short-term market structure," Riya Sehgal, Research Analyst at Delta Exchange, said, but Solana’s ability to hold its own support is noteworthy.
The institutional narrative was significantly strengthened by Morgan Stanley’s amended S-1 filing for a proposed spot Solana ETF (MSOL). The filing detailed a structure that could stake up to 100 percent of its holdings, a mechanism that could tighten liquid SOL supply on the open market. This dedicated demand for SOL stands in contrast to the broader market, which saw over $1 billion in digital asset product outflows in a single week, and makes the nearly $1.1 billion in cumulative net inflows for Solana ETFs even more significant. For comparison, the entire Dogecoin spot ETF complex holds just $14.7 million in assets under management.
The next major catalyst is the Alpenglow upgrade, which entered a community test cluster on May 11. Developed by Anza, Alpenglow is focused on improving network performance and reliability—a direct response to past network outages, such as the one in February 2024. With a mainnet activation targeted for late Q3 or early Q4, the upgrade represents a fundamental step toward combining high throughput with long-term stability, a key factor for attracting enterprise-grade applications and institutional capital.
On the daily chart, Solana continues to trade in a tight range below its key long-term moving averages. As of May 21, the 20-day exponential moving average (EMA) sits near $87.82, with the 50-day EMA around $87.66. SOL has been battling for control of these levels throughout May.
Immediate overhead resistance is visible at the 100-day EMA near $92.85, which aligns with the rejection zone that capped the rally on May 15. Above that, the 200-day EMA near $109.36 remains the major macro resistance level. However, data from TradingView shows On Balance Volume (OBV) has gradually recovered to 59.67 million, indicating accumulation pressure is building beneath the surface.
Despite the bullish catalysts, Solana is not immune to broader market pressures. Trading activity on the network has cooled from the memecoin-driven frenzy of early 2025, and recent 13F filings revealed Goldman Sachs had exited its Solana ETF exposure in the first quarter. Furthermore, with US Treasury yields rising and Bitcoin facing resistance, the macro environment remains a headwind for risk assets across the board. Failure to reclaim the $90 to $93 range could leave SOL vulnerable to a retest of support in the low-$80s.
This article is for informational purposes only and does not constitute investment advice.
