Why is Solana price surging, and can SOL finally break above $100?

Solana is up by 1% in the last 24 hours and is trading above $94 on Monday after rising 27% last week and reaching its highest level in two months.

$SOL maintains a bullish near-term structure as it trades above its major moving averages.

Renewed institutional demand and the start of validator voting on three network proposals provide fundamental support for the token.

However, the rapid price increase has pushed momentum indicators into overbought territory, suggesting $SOL could consolidate before attempting a sustained breakout above $100.

Solana validators begin voting on three proposals

Solana validators began voting Monday on SGP 1, SGP 2 and SGP 3, with the process scheduled to end Thursday.

SGP 1 seeks approval of the Solana Constitution, which would establish a formal framework for network-level decision-making.

The proposal aims to define how the ecosystem handles governance matters and future protocol changes.

SGP 2 focuses on Solana’s token issuance schedule. It proposes increasing the disinflation rate from 15% to 30%, which would cause the network’s inflation rate to decline more quickly.

A faster reduction in inflation could slow the growth of $SOL’s supply, although the proposal would not reduce the existing token supply directly.

SGP 3 would revise Solana’s transaction-fee structure by introducing a fixed base inclusion fee paid to the block leader.

It would also add a re, with that portion burned

Together, the proposals could reshape Solana’s governance, issuance schedule and transaction economics.

Institutional demand for Solana strengthened last week as $SOL-focused ETFs recorded four consecutive trading days of inflows.

The funds attracted a combined $28.34 million This marked their highest weekly inflow total in two months and coincided with Solana’s 27% price rebound

Sustained ETF inflows could provide additional buying support and strengthen the case for a broader bullish reversal.

However, one week of positive flows does not confirm a lasting trend. Investors will be watching whether institutional demand continues after $SOL’s rapid price increase.

Solana faces resistance at $98.41 and $100

The $SOL/USD 4-hour chart remains bullish and efficient as Solana is currently trading above the 50-day Exponential Moving Average at $79.04 and the 200-day EMA at $92.67, supporting a positive short-term outlook.

The immediate resistance level is the May 11 high at $98.41, followed by the psychological barrier at $100.

$SOL needs a decisive daily close above $100 to confirm a continuation of the recovery.

A successful breakout could open the path toward $112.52, the 127.2% Fibonacci extension of the decline from $98.41 to $60.13.

The 4-hour Relative Strength Index stands near 64, placing $SOL close to the overbought territory.

An elevated RSI reflects strong buying momentum but also indicates that the rally may be stretched in the short term.

The Moving Average Convergence Divergence indicator continues to trend higher and maintains a positive histogram, showing that buyers remain in control.

Together, the indicators suggest the broader bias remains bullish, although the risk of profit-taking or consolidation has increased.

On the downside, the 200-day EMA at $92.67 provides immediate support. Holding above this level would preserve $SOL’s recent breakout and keep the $100 target within reach.

A close below the 200-day EMA could extend the pullback toward the 78.6% Fibonacci retracement level at $88.56.

If selling pressure increases, $SOL could fall toward the 50-day EMA at $79.04 and the 50% Fibonacci retracement level at $76.92.

For now, Solana’s outlook remains constructive above $92.67. A confirmed break above $100 would strengthen the bullish case and shift attention toward $112.52.

Source: cryptonews.net