Solana (SOL) price is observing institutional support to observe a significant rise this month.
With retail investors joining in, questions remain as to whether SOL can return to $200 before June.
Solana is regaining favor with institutions
The actions of institutional investors will always influence Solana’s price throughout 2022 and 2023. The same strength is emerging again, with SOL citing inflows of $11.1 million this month.
This surge makes Solana the second-best performing altcoin in institutional portfolios, behind Chainlink, matching Litecoin’s year-to-date performance.
During the week ending May 17, SOL recorded inflows worth around $5 million as the CPI report sparked optimism in the cryptocurrency market. These large wallet holders are known to influence the price movements of their assets, so it would not be surprising to see a positive response from Solana going forward.
Read more: How to Buy Solana (SOL) and Everything You Need to Know
It’s not just institutions that crave growth, but retail investors as well. This can be seen in open interest, which represents the total number of active derivative contracts such as options or futures that have not yet been settled.
It is an important measure of market activity and liquidity, indicating the flow of funds into and out of the market.
This open interest increased by $800 million, from $1.77 billion to $2.5 billion last week. Since the funding ratio is positive, it can be seen that most of the funds were invested in long-term contracts.
This means investors are betting on Solana’s price rising.
SOL Price Prediction: Key Resistance to the Watch
Solana’s price has rebounded from the $169 support level and is trading at $180 at the time of writing. Although the aforementioned clues are bullish, the altcoin still faces resistance at $191. Violation of this resistance level will allow further growth.
If SOL reclaims the $200 support low, it could rise above $201 and hit its highest of the year.
Read More: Solana (SOL) Price Prediction for 2024/2025/2030
However, if the breach fails, Solana’s price risks falling below the $175 support level and reaching $169. A break of the latter support could invalidate the bulls, potentially sending SOL to $156.
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