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- Institutional interest significantly gears towards Solana (SOL) as DeFi Dev Corp expands its portfolio soon after Galaxy Digital channelled $106 million from ETH to SOL.
- Analysts have found the formation of a bullish pattern, which could “send” the price of SOL back to $176.
DeFi Development Corporation has increased its Solana (SOL) holdings to 317,273 SOL ($48.2 million) after acquiring an additional 65,305 tokens ($9.9 million). According to the information disclosed to us, some of the assets were acquired through “locked SOL sourced via BitGo’s OTC desk.”
Technically, this implies that the purchased amount would be unlocked through a time-based schedule. Also, tokens purchased through this method are meant for long-term holdings.
In a press release, the company explained that locked SOL means the assets would be held under contractual restrictions. In this case, they cannot in any way be transferred on-chain while their unlock periods are still active. However, they can be traded over the counter.
Shedding more light on this, DeFi Development Corporation disclosed that this initiative forms part of its adopted treasury policy, which permits it to allocate a portion of its principal holdings in its treasury reserve on the balance sheet to SOL. According to them, this decision seamlessly provides investors with economic exposure to Solana’s investment.
Commenting on this, the CEO of the company, Joseph Onorati, highlighted that this initiative underscores the company’s commitment and strategic execution in building its treasury strategy.
By gaining access to locked discounted inventory through a trusted partner like BitGo, we’re able to accumulate some of our SOL below market prices while deepening our alignment with the Solana ecosystem.
Solana’s institutional interest is slowly taking shape as Galaxy Digital recently moved $106 million from ETH to SOL, as discussed earlier. In another update, CNF also disclosed that Canadian investment firm SOL Strategies Inc. has secured $500 million to advance the Solana blockchain ecosystem.
Amidst the backdrop of this, SOL has recorded a 9% surge on its weekly price chart to trade at $147. According to our market data, the current price represents a 2.6% decline from the previous day when SOL was trading at $153. In line with the daily trend, the 24-trading volume has also taken a nosedive, “dragging” the amount flowing within and out of the market down to $4.2 billion.
Solana (SOL) Price Prediction
Analysts have observed that the SOL’s price position above the 50, 100, and 200-day Exponential Moving Averages (EMA) hints at a possible bullish run to $150. According to them, a successful retest of this level could see the asset extending its run to $176. Fascinatingly, this aligns with the formation of a head and shoulders pattern, which is currently extending from the neckline to the head.
On the other hand, SOL has also shown the possibility of returning to $140 as exhaustion has been spotted on its Moving Average Convergence Divergence (MACD) indicator.
According to analysts, the failure of the asset to validate its bullish potential could see the price recede to the 100-day EMA, which is found around the $133 level. SOL’s long-term potential is reported to be bullish, as an analyst also predicts a bullish reversal to $2000, as detailed in our previous news brief.
