Uncertainty dominates the crypto market following a massive drop in global capitalization, putting the spotlight on the current Solana price prediction. As noted by market analyst Onur, the asset has managed to defend a critical support, coinciding with the launch of the 21Shares ETF, which begins operations with significant initial capital amidst prevailing volatility.
Despite the generalized corrective environment, institutional investment products show notable resilience in the short term. 21Shares has launched its ETF with $100 million initial capital, adding to a streak of 16 consecutive days of net inflows totaling over $867 million. However, network activity contrasts with these positive flows, as active addresses on the Solana blockchain recently dropped to 35.9 million, their lowest level in almost a year. This decline is mainly attributed to the cooling of the speculative memecoin fever that boosted the network months ago.
This scenario presents an evident contradiction between growing institutional appetite and retail on-chain participation. While Bitcoin has retraced 27% in the last six weeks, wiping out a trillion dollars from the market, Solana has suffered an even greater drop of 40% year-to-date. Therefore, this disconnection suggests that large capitals are accumulating strategic positions taking advantage of low prices, while the average user withdraws due to the lack of immediate incentives and the generalized fear prevailing in the current digital ecosystem sentiment.
Can the $130 support prevent a major collapse?
Technical analysis reveals a decisive battle in current price charts against selling pressure. The SOL token is testing the upper boundary of its descending channel near $144, after forming a double bottom pattern in the $130-132 range. If the asset manages to break resistance with conviction, the Solana price prediction points towards a solid recovery up to $150 or $170. However, indicators like the RSI at 55.61 show cautious optimism, backed by open interest that has recovered levels above $7.3 billion, indicating real buyers.
The market finds itself at a turning point where defending the current support is vital to avoid catastrophic scenarios. If the $130 level fails, bearish projections could intensify drastically, with some analysts warning of a possible return to $30 if panic takes over the sector. Thus, the coming days will be crucial to confirm if institutional accumulation is sufficient to reverse the trend or if low network activity will end up dragging the valuation towards new annual lows.
