Solana (SOL) presents a perplexing scenario for crypto market participants. While its price struggles to maintain key support levels, on-chain data reveals surging institutional interest and record-breaking network activity—creating a stark divergence between technical and fundamental indicators.
Institutional Inflows Defy Price Weakness
Despite SOL’s downward price trajectory, capital continues flooding into the ecosystem. Trading volume skyrocketed 58% to $5.84 billion within 24 hours, while weekly inflows into Solana-based investment products surpassed $400 million. Notably, 62% of these funds ($126 million) originated from Ethereum through cross-chain bridges.
The institutional appetite appears driven by Solana’s growing ETF/ETP offerings, with blockchain-managed assets now totaling $2.84 billion. Publicly traded companies are reportedly accumulating SOL positions to capitalize on staking rewards, while Circle’s recent minting of $1.25 billion USDC stablecoins on Solana brings its total stablecoin value to $24 billion.
Should investors sell immediately? Or is it worth buying Solana?
Technical Breakdown Threatens Further Declines
From a chart perspective, SOL shows concerning weakness. Repeated failures to breach the $210 resistance level triggered a breakdown below critical supports at $200 and $188. A bearish trendline now caps rebounds near $188, with analysts eyeing potential downside targets:
- Immediate support at $175
- Secondary zone at $172
- Critical cluster between $178-$180 (failure here could trigger drop toward $162)
Network Fundamentals Remain Robust
Solana continues demonstrating operational excellence, leading all blockchain networks in revenue generation for 22 consecutive weeks. Decentralized applications contributed $35 million to this figure, showcasing sustained developer activity.
Market strategists debate whether these strong fundamentals can outweigh technical selling pressure. The coming weeks may determine whether institutional demand can reverse the current correction or if SOL’s price must first find firmer footing before resuming its upward trajectory.
Ad
Solana Stock: Buy or Sell?! New Solana Analysis from October 5 delivers the answer:
The latest Solana figures speak for themselves: Urgent action needed for Solana investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from October 5.
Solana: Buy or sell? Read more here...
