Solana (SOL) price shows signs of a potential correction after recently rejecting resistance above $160. Nevertheless, increasing institutional demand may provide hope for recovery.
Current Market Situation for Solana
The price of Solana has dropped over 5% in the last 24 hours, trading around $146.55. This occurred amid general market declines in altcoins.
Institutional Demand and Its Impact on Solana
Demand for Solana has surged over the past year due to institutional investors. The recent SEC approval of the first Solana ETF has sparked hopes for further approvals of similar products. DeFi Development Corp. also announced plans to double its SOL acquisitions, aiming to raise $100 million.
SOL Price Prospects
The price of SOL reflects Bitcoin's dynamics, and the recent rejection from the 50-day simple moving average indicates a loss of initial bullish momentum. However, the rising demand from institutional investors suggests a potential bullish rebound later this year.
Despite the current price correction, the rise in institutional demand and regulatory clarity could play a significant role in Solana's future recovery.
