Institutional Backing to Push Solana (SOL) Past $165?

Solana is hovering near the critical $165 resistance level. A breakthrough could drive SOL toward $185, while failure may result in a drop to $155 or lower.

As institutional investors increasingly turn their attention to Solana, the question arises: will this influx of funds be enough to push SOL above the crucial $165 price level?

Having received $5.7 million investments from key stakeholders and $224 billion assets transferred on its network, Solana is garnering similar attention as tier-one blockchain such as Ethereum.

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The platform’s ability to draw large-scale investment may well pave the way for price gains. Heightened institutional interest—but the market remains watchful.

Solana’s Institutional Surge: $5.7 Million Inflows

Solana alone saw institutional investors pump $5.7 million new capital into the project in the week to November 2, as per CoinShares report.

Such inflows are particularly significant especially given the recent market fluctuations. It suggests that institutional approval of Solana is still high.

This rise in institutional investors’ participation occurs during a market correction but SOL has been rather strong in its performance.

Long only investors tend to look at the fundamental value and money continues to pour in. This indicates that these investors are receptive to the high throughput and the ability for the Solana blockchain to scale.

Strong Network Activity Reinforces SOL’s Appeal

Solana’s growth is not only in terms of inflows. It is also in the number of transactions taking place within the network. Coinglass statistics shows that Solana made transactions worth $224 billion in a single day, equal to three times its overall market cap of $76 billion.

This remarkable volume underscores Solana’s expanding role in the crypto ecosystem, appealing to investors who view network performance as a key indicator of a blockchain’s value and growth potential.

With high throughput and fast transactions, Solana has taken the place of a blockchain that can meet the requirements of institutional applications. This activity shows that institutions have confidence and trust in the platform to grow and be efficient with their tasks, qualities that have made it a dApp and Smart Contract competitor to Ethereum.

Can Solana Break $165 Resistance?

Today SOL is at $162.67 after dropping by 11% in the previous week. The next key level is $165. Some market analysts believe that the breakup of this level could see Solana headed toward $185 with a correction at $175.

An institutional purchasing pattern could turn this wall into a support level with a new higher price.

However, if Solana fails to rise above $165, a possible retracement could occur to $155, and a drop to $140 is conceivable. This puts the $165 level as a crucial one that will pave the way toward value increase or bring more fluctuations.