Solana (SOL) showcases a 19.4% rise for the week, currently trading at around $242.67. The URPD chart indicates strong support, intriguing traders.
URPD Chart and Support
The UTXO Realized Price Distribution (URPD) chart from Glassnode demonstrates critical support between $224 and $239, where significant SOL activity occurs. This zone acts as a psychological and technical floor, capable of absorbing selling pressure and facilitating price rebounds.
Institutional Investments and Network Upgrades
Investment from Galaxy Digital amounting to $1.16 billion underscores institutional confidence in SOL. Galaxy's CEO, Mike Novogratz, remarked that Solana is 'tailor-made' for financial markets. Network upgrades like Alpenglow have enhanced throughput, increasing daily transactions to 30 million.
Outlook and Risks for Solana
In addition to positive factors, Solana's history includes instances of network outages, including the prolonged shutdowns of 2021, adding volatility risks. Nevertheless, the rising DeFi and solid financial metrics, such as a total value locked (TVL) nearing $10 billion, create an optimistic backdrop.
Solana is experiencing significant growth with strong support and positive institutional updates, but market participants should consider potential risks related to volatility and network history.
