Institutional investments worth $367 million have surged, causing the price of SOL to stabilize at approximately $170.
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Solana (SOL), one of the most intriguing assets in the crypto market amidst current uncertainty, is currently trading around $181 [1]. This digital currency has been receiving attention due to its resilience, having bounced back multiple times from a support zone for the past two months [2].
However, technical analysis suggests that SOL faces resistance levels at approximately $171.12 (4-hour Supertrend) and $171.40 (0.382 Fibonacci retracement), which could cap short-term gains [1]. The Relative Strength Index (RSI) indicates a neutral to mildly bullish sentiment, while the Directional Movement Index/Average Directional Index (DMI/ADX) suggests a strong trend forming, albeit with the Supertrend remaining bearish below the resistance levels [1].
On-chain activity and market sentiment provide a mixed picture. Solana experienced a strong rally in July, reaching $206, but has since cooled down. Key metrics to watch include daily active addresses, decentralized exchange (DEX) volume, and DeFi total value locked (TVL). If these improve, SOL could bounce and retest highs near $190 or even $200. Conversely, a short-term correction toward the low $170s may occur if these metrics falter or if broader crypto market sentiment (Bitcoin and Ethereum stability) weakens [2].
Institutional buying is a major positive driver. Notable buyers include DeFi Dev Corp, which recently purchased over 181,000 SOL tokens, increasing their total holdings to over $218 million [3]. Upexi Inc., a Nasdaq-listed company, has also expanded its holdings to 1.82 million SOL tokens valued over $330 million [3]. With an estimated staking yield around 8%, this institutional accumulation signals confidence in SOL’s long-term potential [3].
Despite these positive signs, SOL's market is a tug-of-war between bullish institutional players and nervous traders on exchanges. The price of SOL is currently testing a key support zone between $170 and $175. If this support zone breaks, SOL could potentially tumble towards $165 [4]. Short positions between $185 and $190 have built a potential liquidation wall for SOL, indicating that a rally of just 5% from current levels could trigger a cascade of short liquidations [5].
Moreover, SOL recently slipped below an ascending broadening wedge, a pattern that is typically bearish [6]. However, the continued accumulation of SOL tokens by whales adds another layer of support [7].
Analysts bullish on SOL foresee a possible price target near $500 within the current or upcoming bull cycle, emphasising Solana’s status as a top Layer 1 blockchain despite ongoing network criticisms such as congestion and outages [3].
In conclusion, while technical resistance and on-chain activity need to improve for a sustained bull run, institutional buying and whale accumulation provide strong support for a possible bullish breakout. The longer-term price target around $500 is discussed by analysts, but network issues and market sentiment remain key variables that could influence this trajectory.
[1] Technical Analysis: Solana (SOL) Price Analysis - August 03, 2025
[2] Solana Price Analysis: What’s Next for SOL?
[3] Solana Price Prediction 2025: Will SOL Reach $500?
[4] Solana Price Analysis: SOL Faces Key Support Zone
[5] Solana Price Analysis: Short Liquidation Walls and Institutional Buying
[6] Solana Price Analysis: SOL Slips Below Ascending Broadening Wedge
[7] Whales Continue to Accumulate Solana (SOL) Tokens
- The tech-savvy investors, looking towards significant players in the crypto market, have been observing the resilience of Solana (SOL) due to its multiple bounce-backs from a support zone, indicating potential for cryptocurrency investing.
- The shifting dynamics of the Solana (SOL) blockchain market create an interesting landscape, as institutional buyers like DeFi Dev Corp and Upexi Inc., alongside whales, accumulate SOL tokens, indicating confidence in the cryptocurrency's long-term potential.
- Despite the bullish sentiment created by institutional activity and whale accumulation, the on-going network criticisms such as congestion and outages may pose challenges for Solana (SOL) in reaching its projected price target of $500 within the current or upcoming bull cycle.
