Solana's Price Drops 10% Despite Institutional Buying

Solana's price experienced a notable decline, falling below the $150 mark on Thursday. This drop came despite a recent 10% rally, with the token trading at $148.56 at the time of writing. The price movement contrasts with the rising institutional interest in Solana, particularly from DeFi Dev Corp, which recently purchased an additional 65,305 SOL, valued at approximately $9.8 million. This acquisition brings DeFi Dev Corp's total holdings to 317,273 SOL, worth nearly $47.6 million. The strategic move includes staked SOL sourced via BitGo’s OTC desk, aimed at generating native yield from locked tokens. These assets, often tied to venture allocations or vesting schedules, are excluded from on-chain circulation but remain valuable to institutional investors. According to CEO Joseph Onorati, this approach allows DeFi Dev Corp to acquire discounted SOL and reinforce its long-term alignment with the Solana ecosystem despite the ongoing Solana price slip.

Despite the growing institutional interest, the Solana price fall has sparked debate among traders and analysts. Technical indicators suggest a potential bullish reversal, with the breakout from an inverse head-and-shoulders pattern hinting at an upside target of $176, marking a 32% gain from the neckline. SOL also holds above key exponential moving averages (50, 100, and 200-day), which reinforces the medium-term bullish case. However, bearish indicators like the flattening MACD and declining volume are casting doubt on immediate gains. The Solana price fall could deepen if bulls don’t reclaim the critical $150 mark, with $140 standing out as a near-term support zone. If this level holds, the breakout pattern remains valid. Otherwise, the bullish thesis may be challenged, especially as traders weigh technicals against macro risks and recent institutional accumulation by DeFi Dev Corp.

The current Solana price fall has placed the token at a critical crossroads. With institutional buyers like DeFi Dev Corp stepping in, long-term prospects remain promising. However, in the short term, the SOL price drop could deepen if $140 fails to hold. Traders should monitor the SOL price fall alongside volume recovery and key technical levels. Whether the next move is bullish continuation or extended pullback hinges on broader crypto sentiment, which remains sensitive to macro triggers and altcoin rotation. Until clarity emerges, the market stays on alert for signals beyond the Solana price slip headlines.