Cryptocurrency Solana News

Solana Defies Mass Sell-Off: TradFi Investors Accumulate $121 Million on Dip

realistic scene of Solana with luminous logo on a trading desk, charts of institutional flows and decentralized network

While the retail sector drastically reduces exposure due to recent panic, Solana price predictions receive strong backing from institutional capital. Recent data from SoSoValue indicates that TradFi markets have maintained an unbroken buying streak, ignoring the current market correction. Harvey Hunter, market analyst, highlights that this divergence signals deep conviction in the asset’s long-term recovery in the face of volatility.

Although Open Interest plummeted 30% to 7.06 billion, institutional flows tell a very different story. So far in the new week, additional inflows worth $121 million were recorded in spot SOL ETFs, extending a 29-day consecutive inflow streak. This buying volume almost matches the previous week’s records, demonstrating that demand remains solid even after the debut of four new exchange offerings.

This behavior highlights a critical disconnect between short-term speculative sentiment and the underlying strategic vision. While retailers fear further losses following a 30% monthly drop, smart money seizes low prices to position itself. This steady accumulation suggests that real adoption is gaining ground in the digital economy, validating the institutional investment thesis beyond momentary uncertainty.

How far can the divergence between current price and fundamental value go?

Technical analysis supports this aggressive stance by institutions, showing signs of a bullish reversal. Indicators like the RSI have bounced from oversold levels, and the MACD shows a golden cross above the signal line. If the price manages to reclaim the $205 demand zone, it would invalidate the recent downtrend, opening the door toward early 2025 highs. In a breakout scenario, the asset could seek $300 and even $500.

The persistence of ETF flows indicates that major players anticipate an imminent new bull cycle. If the accumulation trend continues and key resistances are broken, the most optimistic projections place the asset near $1,000 as the market matures. Therefore, traders must watch closely if current technical support holds against the remaining retail selling pressure.

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