Solana, a rapidly gaining momentum in the cryptocurrency landscape, recently surpassed the $200 mark due to institutional investments and growing interest in the asset.
Institutional Moves Boost Solana’s Credibility
The price surge of Solana was triggered by Upexi’s announcement of establishing a Solana-focused advisory committee headed by BitMEX co-founder Arthur Hayes. Upexi also stated it holds $316 million worth of SOL and plans to expand into strategic DeFi partnerships. Analysts likened this strategy to MicroStrategy’s approach to Bitcoin, viewing Solana as a potential long-term corporate treasury asset. According to Upexi’s filing, public companies now collectively control about 8% of SOL’s circulating supply, creating a potential supply squeeze.
ETF Decision Could Be the Next Catalyst
Traders are also closely monitoring the U.S. Securities and Exchange Commission’s anticipated decision on Solana ETFs. Analysts and market predictions estimate the approval odds to be around 90%.
Technical Breakout Signals Bullish Momentum
From a technical perspective, SOL’s breakout above $200 signals strong bullish momentum. The MACD histogram has flipped into positive territory, while the price has cleared a key Fibonacci retracement level at $194.12. If the bullish momentum holds, the next target is near $219.41, although the Relative Strength Index (RSI) is approaching overbought territory. Sustained closes above $200 would help establish that level as new support.
Solana’s rise, backed by institutional interest and positive technical signals, positions it as an attractive asset in the current market climate, especially after surpassing $200.
