The post Why Are Institutional Investors Betting Big on Solana? Insights Behind the $5.7M Investment appeared first on Coinpedia Fintech News
As the crypto world experiences ups and downs, Solana has emerged as a hot favorite for institutional investors, grabbing attention with a whopping $5.7 million in recent investments. This strong backing could help push SOL’s price higher as it aims to break key levels. Will this support drive SOL’s rise, or will the market’s challenges hold it back?
Solana Strong Institutional Backing
Solana (SOL) recently experienced a huge spike in activity, with an incredible $224 billion worth of assets transferred on its network in a single day. This surge represents nearly 3x of Solana’s total market cap of $76 billion, highlighting the rising interest in Solana, especially among institutional players.
Recently CoinShares reported that Solana has become a favorite among institutional investors for the week ending November 2. This week alone, Solana attracted $5.7 million in inflows, which is significant, especially when compared to Ethereum’s $9.5 million.
Meanwhile, the steady interest from institutions notes Solana’s role as a leading blockchain network, strengthening its potential for long-term growth and solidifying its appeal among major investors.
Despite the overall decline in the cryptocurrency market, institutional support for Solana remains strong
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As of now, Solana is trading at around $161.24 after an 11% drop in the past week, hovering just under the crucial $165 resistance level. Converting this resistance into support is vital for SOL to aim for the next target of $185.
If successful, Solana could see an upward momentum, potentially reaching around $175 or even higher. Institutional buying power could further fuel this rally, making it an exciting time for investors.
However, if SOL fails to hold above $165, it may slip back to $155, raising concerns of a deeper pullback to around $140.
