finbold.com
Although Solana (SOL) has dropped below the crucial $150 support level, the decentralized finance (DeFi) project is witnessing bullish sentiment in the short term.
Indeed, the $150 position has been viewed as crucial to help the cryptocurrency attain a new all-time high. Notably, despite benefiting from the overall market trajectory, Solana remains among the standout cryptocurrencies of the recent rally, having gained interest amid the surge in blockchain projects, particularly meme coins launched on the platform.
Additionally, the crypto has maintained a bullish sentiment despite network issues such as congestion, which have since been resolved.
Whales dominate SOL transactions
However, SOL’s short-term bullish momentum could be altered considering the recent transactions involving whales. Particularly, according to Whale Alert’s data shared on April 27, two substantial transfers took place within hours of each other, involving a total of over 22 million SOL tokens amounting to over $3 billion.
The first transaction involved 11 million SOL tokens, valued at approximately $1.53 billion, being moved from an undisclosed wallet to another unknown wallet. The second transfer involved 11.1 million SOL tokens, worth approximately $1.55 billion, being transferred involving two unidentified wallets.
SOL registers institutional interest
In addition to the potential volatility expected from whale transactions, Solana is poised to experience a shift in its price trajectory driven by various on-chain factors.
Specifically, a survey conducted by CoinShares revealed that institutional investors have been exhibiting a strong preference for Solana. Indeed, the increasing interest from institutional players is likely to bolster investor confidence in the altcoin, potentially influencing its price trajectory.
Certainly, the institutional interest could be interpreted as a vote of confidence, particularly considering the coin’s endured reputational setbacks due to sustained network outages.
Meanwhile, Solana was valued at $142.36 by press time, reflecting daily gains of nearly 3%.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.