Solana’s price action is entering a decisive phase, as traders weigh oversold technical signals against strengthening institutional demand. The token has pulled back to around $210, a level that continues to attract attention due to its role as both a support and breakout zone.
Technical Signals Suggest a Potential Rebound
On the 4-hour chart, Solana is retesting the lower boundary of its ascending channel near $200. Trader Tardigrade pointed out that the relative strength index has dropped into oversold territory. This condition has often preceded sharp reversals, increasing the likelihood of a bounce.
If the support holds, a push towards $240 and finally the $300-$320 zone is still possible. Meanwhile, a breakdown below $200 could paint a downside target towards $185.
Ali Martinez emphasized another crucial level. He noted that Solana recently confirmed its breakout by retesting the $210 support area, which previously acted as strong resistance. This retest reinforces the broader bullish structure, supported by a consistent trend of higher lows since April.
Martinez sees resistance forming near $250, aligning with a Fibonacci extension that could accelerate gains toward $277 and $320. Conversely, losing the $210 pivot could drag prices back toward $190.
Market Performance and Institutional Activity
As of press time, Solana trades around $210.56, marking a 3.74% daily decline and a 10.6% weekly drop. Despite this correction, its market capitalization stands at over $114 billion, and daily trading volumes exceed $8.7 billion. These numbers indicate solid liquidity and persistent investor interest, even in periods of weakness.
Institutional investors are increasingly shaping Solana’s long-term narrative. Galaxy Digital has raised its position to $1.55 billion after adding $306 million in fresh allocations. Pantera Capital also maintains over $1 billion in exposure, signaling long-term conviction.
Additionally, Helius Medical introduced Solana into its corporate treasury, purchasing 760,000 tokens worth $167 million at an average price of $231. The company intends to scale holdings to $500 million, not only for capital appreciation but also for staking and DeFi yield opportunities.