Institutions favour Solana, the covert standout
Solana, the high-performance blockchain, is currently experiencing a surge in interest from institutional investors, with its price hovering around the 234-dollar mark after reaching an 8-month high of 240 dollars this week.
Since 2021, the 250-dollar mark has proven to be a barrier for Solana. Breaking this barrier could potentially lead to Solana reaching the 300-dollar mark.
The performance of Solana remains closely tied to that of Bitcoin in the market. However, if Bitcoin were to crash, Solana could struggle despite its positive fundamentals.
On the other hand, if the Federal Reserve (Fed) decides to cut interest rates, as markets predict a possible 25 or even 50 basis point rate cut on September 17, it could signal cheaper money, making speculative investments like cryptocurrencies more attractive.
Institutional investors are accumulating billions of dollars worth of Solana (SOL) tokens. Forward Industries, a Nasdaq-listed company, has already purchased 6.8 million SOL worth 1.58 billion dollars, with support from Galaxy Digital, Jump Crypto, and Multicoin Capital. Mike Novogratz, CEO of Galaxy, predicts a "Season of SOL" due to growing institutional adoption and potential ETF approvals.
Open interest in SOL futures has reached a record high of 16.6 billion dollars, indicating solid interest in the cryptocurrency. Solid support for SOL is forming at 233 dollars, while resistance waits at 237-238 dollars.
Solana's Total Value Locked (TVL) has climbed to 12.9 billion dollars, placing it in second place behind Ethereum. Trading volume in the DeFi landscape has exploded by 32% to 125 billion dollars in 30 days.
Pantera Capital, a significant crypto investor, holds 1.1 billion dollars in Solana, making it the fund's largest commitment. Dan Morehead, founder of Pantera Capital, describes Solana as "the fastest and most powerful blockchain."
A new Solana analysis from September 17 provides advice on whether to buy or sell. The analysis discusses that Solana buyers urgently need to act due to strong institutional interest, whale accumulation, and ETF approval prospects which could drive the price up to $670 or beyond. However, caution is advised if demand weakens, as the price could drop below key support levels like $219.21.
For more insights on whether to buy or sell Solana, read more here.
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