Solana Rebounds to $216 as Institutions Accumulate, Eyes $232 Target
Key Highlights:
- Solana (SOL) experienced a dip to $205, recovering quickly above $209–$216 as institutional investors bought the dip.
- The sell-off was aligned with U.S. market jitters, but crypto mirrored equities' recovery.
- Order-flow data indicates professional buyers took advantage of the weakness, with funding briefly turning negative, prompting new long positions in spot and perpetual markets.
ETF Speculation & Market Sentiment
- October 10 is pivotal for Solana, with the SEC expected to decide on several Solana ETF applications.
- Reports suggest procedural requests from regulators, not outright rejections, regarding certain altcoin filings.
- The potential for multiple crypto ETFs in October ("Cointober") mirrors Ethereum's earlier success, keeping optimism high among traders and institutions.
On-Chain Dynamics
- Liveliness has increased, indicating stronger long-term holder (LTH) activity over three months.
- Holders with 1–3 month holdings now control 14.4% of the supply, a five-month peak, showing increased short-term interest.
- Institutional flows and asset-manager positioning ahead of the ETF decision are crucial, alongside active development in Solana DeFi.
Technical Analysis
- SOL regained its weekly median range post-crash, showing underlying strength.
- Immediate support is at $206; a drop below could challenge the bullish trend.
- Resistance at $214 and $221; surpassing these could target $232, with potential for further gains if momentum builds around the ETF decision.