Bitcoin‘s value has soared past $70,000, nearing its peak, while alternative cryptocurrencies (altcoins) have seen a significant upswing in the last day, with some registering double-digit percentage gains. In the same breath, the financial community is gauging the future trajectory of Solana (SOL), given its recent climb over $100 and the role of institutional investors in this ascent.
Investor Sentiment on Solana
The influence of institutional investors on Solana’s value is evident, with a noticeable positive premium on SOL’s investment products. This scenario mirrors the earlier surge Bitcoin experienced with institutional backing. Nevertheless, recent reports have sparked concerns, with Solana investment products witnessing a significant $5.6 million withdrawal in the past week. Moreover, there has been a decline in monthly inflows to these funds.
The shift in institutional behavior might prompt retail investors to sell on exchanges, reversing the previous buying trend. Adding to the cautious outlook is the stagnant funding rate for Solana in derivative markets, which could signal a fading momentum despite being long-oriented.
Current State and Projections for SOL Price
Presently, SOL Coin is experiencing modest growth, trading around $190, buoyed by the broader market’s optimistic trend with Bitcoin nearing $71,000. Nevertheless, it’s shying away from higher surges, and investor hesitancy at the $201 resistance level suggests a risk of a downward trend for SOL if it dips below $183, with potential to decrease to as low as between $168 and $148.
Conversely, should Solana conquer the $200 mark, it could invalidate the bearish outlook, potentially challenging the $260 all-time high territory or even setting new records. Upcoming airdrops within its ecosystem might further invigorate investor sentiment in the near term.
