TLDR
- Solana currently trading at $148, pulling back from recent $154 high
- Technical analysis reveals potential breakout targets between $176-$180
- DeFi Dev Corp added 65,305 SOL to their holdings, now owns 317,273 SOL
- Solana Foundation implementing new validator policy to enhance decentralization
- Institutions including Galaxy Digital and ARK Invest showing increased interest in SOL
Solana has experienced a slight correction after its recent rally, with the price dipping below $150 on Thursday. The cryptocurrency had gained over 10% in less than a week before this pullback, reflecting the volatility that continues to characterize the crypto market.
At the time of writing, SOL trades at $148, down from Wednesday’s peak of $154. This retreat comes despite improving sentiment across the broader cryptocurrency market.
Market analysts are watching key support levels around $140, which could potentially halt the downward momentum if selling pressure continues. The short-term price action will likely depend on whether bulls can reclaim and hold above the $150 level.
DeFi Development Corporation made headlines on Thursday with its announcement of a substantial SOL purchase. The company acquired approximately 65,305 SOL tokens worth around $9.8 million.
This latest purchase brings DeFi Dev Corp’s total Solana holdings to an impressive 317,273 SOL, valued at approximately $47.6 million when including staking rewards. The company’s growing position demonstrates strong conviction in Solana’s long-term potential.
DeFi Dev Corp CEO Joseph Onorati explained that part of their strategy involves accessing “locked discounted inventory” through BitGo’s over-the-counter desk. This approach allows them to accumulate SOL below market prices while strengthening their position within the Solana ecosystem.
Major Players Backing Solana
The institutional interest in Solana extends beyond DeFi Dev Corp. Several major financial players have recently made moves to increase their exposure to SOL.
Galaxy Digital made a strategic portfolio adjustment by divesting $106 million worth of Ethereum (ETH) and redirecting those funds into Solana. This reallocation from the market’s second-largest cryptocurrency to SOL highlights the growing institutional preference for Solana.
SOL Strategies secured a $500 million convertible notes agreement with ATW Partners in another significant development this week. The investment entity plans to acquire and stake SOL through its validator operations.
Cathie Wood’s ARK Invest joined the Solana bandwagon with its first direct investment in SOL on April 21, 2025. This move by the high-profile investment firm has added further legitimacy to Solana as an institutional-grade asset.
These developments collectively suggest that Solana has been gaining favor among professional investors, potentially at Ethereum’s expense. The increased institutional backing could attract more retail investors looking to capitalize on positive momentum.
Enhancing Network Strength
The Solana Foundation announced important changes to its validator policy on April 23, 2025. The foundation will implement stricter criteria for validators participating in its Delegation Program.
Ben Hawkins, who leads Solana’s staking ecosystem, outlined that for every new validator added to the Solana Foundation Delegation Program mainnet delegation, three existing validators will be removed if they meet specific conditions.
These conditions include being eligible for delegation from the Solana Foundation on the mainnet for at least 18 months and holding less than 1,000 SOL in stake outside the Foundation’s delegation.
This policy change aims to reduce the number of validators that rely solely on the foundation’s stake. The initiative reflects the foundation’s commitment to building a more decentralized and robust network.
The announcement was received positively by the market, with SOL price briefly rising 1.63% following the news.
Chart Patterns Signal Potential Gains
Technical analysts have identified several bullish patterns on Solana’s price charts that could drive further upside in the coming weeks.
The daily chart shows the formation of an inverse head-and-shoulders pattern, which typically signals a bullish reversal. If this pattern completes, it projects a potential 32% move to $176, based on the pattern’s height measured from the neckline to the head.
Solana’s price remains positioned above key technical indicators, including the 50, 100, and 200-day Exponential Moving Averages (EMAs). This positioning generally indicates bullish market conditions.
Over the past two weeks, SOL has bounced from $95.26 to $150.9, breaking above the previous swing high resistance at $147. This breakout, combined with reclaiming the 20-day and 50-day exponential moving averages, supports the renewed bullish sentiment.
If SOL maintains its position above $147, buyers could push for another 18% gain, targeting the $180 resistance level. However, if sellers push the price below this support, it could indicate a false breakout and potentially extend the correction toward $100.
Well-known trader Peter Brandt has identified a “cup and handle” formation in the SOL/ETH trading pair. This classic bullish pattern suggests Solana could significantly outperform Ethereum if SOL breaks above the key resistance level at 0.085 on this pair.
This C&H is still playing out, by the way.
SOL has lots of room to gain on its invalid cousin, $ETH pic.twitter.com/DdguqcNfIl— Peter Brandt (@PeterLBrandt) April 22, 2025
Whale Activity Shows Mixed Strategies
Blockchain analytics platform Lookonchain reported interesting whale movements, with one large holder unstaking 100,000 SOL (worth approximately $13.9 million) and transferring it to Binance.
This particular investor had accumulated 991,079 SOL at an average price of $27 and had staked the funds for 4 years. With SOL now trading around $151.40, their unrealized profits have exceeded $153 million.
Despite the large transfer to Binance, this whale continues to hold 1.19 million SOL valued at around $166.37 million. This suggests the move represents strategic portfolio rebalancing rather than a bearish outlook.
Meanwhile, a newly created wallet withdrew and staked 44,116 SOL worth over $6 million, highlighting mixed strategies within the whale community. Some are taking profits while others continue accumulating.
The Relative Strength Index (RSI) currently stands at 72.82, placing Solana in overbought territory. This could signal a potential short-term pullback, though the strong moving average support levels could limit any downturn.
If the current correction continues, SOL may test support at $140. Beyond this level, the 50-day EMA at $139 could provide additional stability, potentially preventing a deeper decline to the 100-day EMA at $133.
As SOL navigates through short-term volatility, the combination of growing institutional support, network improvements, and favorable technical setups continues to point toward a positive outlook for Solana in the coming months.
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