Solana Likely To Hit $150 Amid Positive Institutional Interest

Solana bears losing momentum at a critical support level
Institutional investors are coming back to Solana
Community working on ways to cut sandwich attacks

Despite the market’s lack of clear direction for the week, there is a noticeable rise in bullish sentiment surrounding Solana. As of 10:08 UTC, Solana recorded a modest increase of 0.31%, trading at $146.06.

Institutional Interest In Solana On The Rise

One significant factor bolstering this positive outlook is the renewed interest from institutional investors. Recent data highlights a shift in investment patterns, with Solana experiencing substantial inflows. Last week alone, Solana saw inflows of $5.9 million, a stark contrast to Ethereum, which faced net outflows of $14.4 million during the same period.

This trend extends to the month-to-date figures, where Solana’s inflows stand at $6.2 million compared to Ethereum’s outflows of $23.4 million. This divergence underscores a growing preference for Solana among investors seeking robust Layer 1 blockchain solutions.

Solana Investors Solving Front-Running Problem

The renewed institutional interest is not just about passive investment; active measures are being taken to enhance Solana’s ecosystem. Notably, Solana investors have committed $9.5 million to combat sandwich attacks, a type of front-running where bots exploit transaction latency to manipulate market prices. Jito, a leading security services firm, is at the forefront of this initiative. By offering a service that bundles and processes transactions privately for a nominal fee, Jito helps shield these transactions from bot interference, thereby increasing market fairness and security.

Technical Improvements To The Network Coming Up

Beyond these security enhancements, the Solana network is seeing technical upgrades to mitigate network congestion. These efforts collectively enhance Solana’s reliable and efficient blockchain platform appeal.

Adoption Is On The Rise For Solana

Further adding to Solana’s growing potential is the increase in adoption and integration within the broader crypto ecosystem. BubbleMaps, a data analytics and visualization platform, recently integrated Solana into its offerings. The Solana team tweeted this development, stating, “Data analytics and visualization support for Solana continues to expand — @bubblemaps has integrated Solana.” This integration signifies expanding utility and recognition of Solana’s blockchain analytics and visualization capabilities.

Data analytics and visualization support for Solana continues to expand — @bubblemaps has integrated Solana! 🫧🗺️

Start exploring Solana token data and share your creations: https://t.co/jSA8wJbPiB https://t.co/fMlwiNWlLA

— Solana (@solana) May 10, 2024

The convergence of these factors—rising institutional interest, proactive measures to improve network security and functionality, and growing adoption—paints a promising picture for Solana. As the broader market teeters on the edge of a potential bullish breakout, Solana’s unique strengths and recent developments position it as a compelling investment opportunity.

Solana Range Bound As But Key Support Holds Strong

Solana is trading at the $146.11 support level after a slight correction earlier today. However, the bears have been unable to push Solana through this support level for a couple of hours, which means they don’t have enough momentum. This is an indicator that a bullish reversal could be underway.

If the Bulls successfully pull through the $146.11 support level, the critical level to watch would be the $149.67 resistance. If bulls push Solana through this resistance, then prices above $150 could be hit in the day.

On the other hand, if Solana bulls lose momentum, then two scenarios could play out today. The first is a possible consolidation between the $149.67 resistance and $146.00 support. However, if bears take control and breach the $146.00 support, it would open the way for a downside correction to $138.25.

Which Way For Solana?

While Solana could go either way today, the odds are higher that bulls could carry the day. That’s because bears have tried a critical support level several times in the day and are still unable to push through it. This is a sign of weakness and a pointer to a possible bullish reversal. Besides, with the broader market showing bullish signals, it could help give Solana the push it needs to hit $150 today.

Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.