Binance Buys the Dip: Institutions Accumulate SOL as Price Rebounds

Solana, the high-speed blockchain platform, has seen a significant dip in the price of its native token, SOL, with the cryptocurrency dropping to a 3-month low of around $160 after reaching an all-time high in January. However, the recent price decline has not deterred institutional investors, as leading crypto exchange Binance has started purchasing SOL in large quantities.

Crypto analyst MartyParty highlighted a strategic move by Binance, which sold its SOL reserves near the January peak and has now begun accumulating the altcoin at lower price levels. This institutional buying could provide strong support for a potential price rebound, as it indicates that large market participants are buying the dip.

At the time of writing, SOL was trading at $172.86, up 5% in the past 24 hours. The price remains near a key support level of $160, which has so far prevented further drops. Although SOL lost the 20-day exponential moving average (EMA) at $193.48 after forming five straight bearish daily candles, the 20-day EMA now presents a major resistance level for the bulls.

Meanwhile, the chances of approval for a spot Solana exchange-traded fund (ETF) in the United States could push the SOL token higher as the market cycle progresses. Firms like Grayscale, 21Shares, Bitwise, and VanEck have submitted applications for a Solana-focused investment product, which could attract more institutional investors to the cryptocurrency.

The Solana Relative Strength Index (RSI) reads a value of 33.70, which is just above the oversold threshold of 30. This suggests that the selling spree might be losing steam, and a bounce could be on the horizon if buying volume picks up. Additionally, the MACD indicator shows that the MACD line (blue) is below the signal line (orange) and the MACD histogram is also red. Although the bears are still in control, the slightly decreasing selling momentum indicates that the downtrend could be weakening.