Solana extended its recovery on Wednesday after climbing above its 50-day Exponential Moving Average. Retail derivatives activity strengthened, although institutional investors showed limited demand through exchange-traded funds. SOL gained about 4% during the previous session as wider cryptocurrency market sentiment improved. The price recovery also pushed the token above key short-term technical levels.
At the same time, Morgan Stanley updated its proposed Solana ETF structure. The bank named Coinbase as a custodian and staking facilitator alongside BNY Mellon.
CoinGlass data showed that Solana futures open interest remained near $4.91 billion during the past 24 hours. The stable figure suggests traders maintained their existing leveraged positions. Meanwhile, SOL futures trading volume rose 15% to about $6.90 billion. The increase showed stronger market participation and continued position building during the recovery.
Solana’s funding rate also remained positive at about 0.0040%. Positive funding means long-position holders paid short-position holders to keep their positions open. In contrast, institutional demand remained weak. SoSoValue data showed that Solana ETFs recorded zero net inflows during two consecutive trading sessions this week.
The lack of new ETF inflows suggests traditional investors have not followed the rise in retail activity. Instead, they have maintained a cautious approach during the broader market rebound.
Solana improved its short-term technical structure after reclaiming the 50-day EMA at $76.82. The token also moved above the 50% Fibonacci retracement level at $76.92. The Fibonacci level measures Solana’s recovery from its decline between $98.41 and $60.13. Holding above that area could support the current rebound.
Still, SOL faces resistance from a descending trendline near $81.50. A daily close above that level would confirm a break from the existing downward trend. Such a move could open a path toward the next resistance at $88.56. The 200-day EMA at $94.52 would then represent the next major technical barrier.
The Relative Strength Index stood near 54, showing moderate buying pressure without overbought conditions. Meanwhile, the MACD approached a bullish crossover near its signal line. A confirmed MACD crossover could signal improving momentum. Still, SOL must clear the $81.50 trendline before the technical structure shows a broader recovery.
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Morgan Stanley filed its third round of amendments for its proposed spot Ether and Solana ETFs. The bank first submitted the applications in January. The updated S-1 registration statements name Coinbase as custodian and staking facilitator. BNY Mellon will also serve as a joint custodian for both proposed trusts.
Morgan Stanley plans to list its Solana ETF on NYSE Arca under the ticker MSOL. Its proposed Ether product would trade under the ticker MSSE. The Solana trust may stake up to 100% of its SOL holdings. However, the fund would keep part of its assets liquid for redemptions and operating expenses.
Staking providers and custodians would receive 5% of generated staking rewards. The remaining 95% would accrue to the trust. Earlier filings also named Figment, Galaxy Blockchain Infrastructure and Coinbase Canada as staking service providers. Morgan Stanley has kept staking central to both ETF proposals.
Solana’s recovery gained momentum after SOL reclaimed its 50-day EMA and futures activity improved. Yet, weak ETF inflows showed continued institutional caution. Morgan Stanley’s revised Solana ETF filing may support future interest, while the $81.50 resistance remains the key level traders should monitor.