Solana Gains 45% as Institutional Investors Show Confidence

Solana (SOL) has been garnering significant attention from institutional investors, with several high-profile moves indicating a growing confidence in the cryptocurrency's potential. Currently trading around $138, SOL has shown resilience, pushing up nearly 45% from its recent lows and gaining about 4% over the past week.

A notable development involved a major Solana whale withdrawing 374,161 SOL, worth approximately $52.7 million, from Binance to a private wallet. This type of exchange outflow often suggests a long-term holding strategy rather than immediate selling pressure, indicating confidence in SOL’s future value among large investors.

In a significant corporate move, GSR, a crypto trading and investment firm, secured a $100 million private investment in public equity (PIPE) in Upexi (UPXI). As part of this deal, Upexi has committed to establishing a Solana treasury strategy that includes accumulating and staking SOL. This move represents a shift from the typical corporate treasury strategy, where companies have predominantly focused on Bitcoin, signaling growing confidence in alternative Layer 1 blockchains.

Additionally, commercial real estate firm Janover has entered the Solana market, purchasing 163,651 SOL valued at $10.5 million as part of its crypto treasury initiative. The company aims to become a significant holder of SOL, similar to the business intelligence firm known for its massive Bitcoin holdings.

On-chain data reveals that Solana is one of the most active blockchains in the industry. Over the past 30 days, it processed more than 1.49 billion transactions, with active addresses increasing by 4.6% to 105 million. These numbers far surpass Ethereum, which had 6.6 million active addresses and processed over 35 million transactions during the same period. Solana also offers attractive staking rewards at 8.3%, higher than competitors like Ethereum (2.8%), BNB Chain (1.8%), and Sui (2.5%). For investors, this means a $1,000 investment in SOL would yield approximately $83 per year through staking.

From a technical perspective, Solana recently broke above its descending trendline that had been in place since mid-January. The price found support around its 50-day exponential moving average (EMA) at $136.14, which could serve as a springboard for further upward movement. The Relative Strength Index (RSI) on the daily chart reads 58, above its neutral level of 50, indicating bullish momentum. The Moving Average Convergence Divergence (MACD) exhibited a bullish crossover last week, signaling a potential continuation of the upward trend.

Some analysts point to a cup and handle pattern forming on the weekly chart, which is considered a continuation sign. This pattern consists of a horizontal line and a rounded bottom, typically leading to more upside movement. If this pattern plays out, some projections suggest Solana could potentially reach $500, representing a 265% increase from current levels. The recent pullback appears to be forming the handle section of this pattern. Near-term price targets include the March 25 high of $147.48, followed by potential resistance at $160 if bullish momentum continues. However, failure to maintain support at the 50-day EMA could lead to a correction toward the $118.10 support level.

Institutional interest continues to grow, with asset manager ARK Invest announcing plans to incorporate Canada’s 3iQ Solana Staking ETF into its crypto-focused funds. Additionally, market observers anticipate that the Securities and Exchange Commission (SEC) may approve a spot Solana ETF later this year, with potential inflows of over $6 billion in the first year. Galaxy Digital also appears to be reallocating assets toward Solana, depositing 65,600 ETH to Binance exchange while withdrawing 752,240 SOL tokens from the exchange over the past two weeks.