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Solana Price Analysis: Can Rising Institutional Demand Reverse Bearish Outlook?
The fundamentals for Solana have significantly improved year-to-date due to various pro-crypto legislations. Historical analysis suggests the BTC price and the wider altcoin market could surge in the fourth quarter of 2025.
Solana’s (SOL) price experienced heightened bearish sentiment during the second quarter and has since approached a crucial crossroads. The large-cap altcoin, with a fully diluted valuation of approximately $92.3 billion and a 24-hour average traded volume of around $4.6 billion, dropped roughly 3.2 percent in the last 30 days to trade at about $152.83 on Thursday, July 3, during the mid-North American trading session.
As a result, SOL’s price has consistently closed below the 50-weekly Moving Average (MA) for the larger part since March. From a technical analysis standpoint, Solana’s price has been forming a potential head and shoulders (H&S) pattern coupled with bearish divergence of the weekly Relative Strength Index (RSI). The midterm bearish sentiment will be invalidated if SOL’s price consistently closes above the resistance level around $189. In such a scenario, Solana’s price would aim to reach a new all-time high in the near future.
The Solana network has recorded exponential growth in the number of institutional investors adopting its services or as a form of treasury management. Furthermore, the increased engagement between the U.S. SEC and the fund managers seeking to offer spot SOL ETFs signals an imminent approval in the near future, which implies rising demand from institutional investors.
Recently, DeFi Development Corp. (NASDAQ: DFDV) announced the resumption of Solana coin acquisition to bolster its treasury portfolio. The company declared the acquisition of 17,760 Solana coins for approximately $2.72 million. As a result, DeFi Development now holds 640,585 SOL coins, which are valued at around $98 million.
Given this information and considering historical trends and market sentiments, it seems reasonable to assume that institutional demand could potentially reverse the bearish outlook on Solana’s price.
Source: coinpedia.org
