Solana's latest price movements have reignited discussions among market participants about whether the $190 support can remain strong enough to fuel a surge toward $240 or higher. The introduction of spot
Solana
ETFs and rising staking returns have led to increased institutional interest, putting both the technical and fundamental aspects of the altcoin under the microscope.
Institutional involvement in the Solana ecosystem has intensified recently, largely due to the launch of the Bitwise Solana ETF (BSOL) and Grayscale's Solana Trust ETF (GSOL). According to
a Yahoo report
, Bitwise's ETF alone attracted $69.5 million in investments on its opening day, while Grayscale's fund holds 525,387
SOL
tokens, with 74.89% staked for network rewards, as noted by
Benzinga
. Together with Rex-Osprey's SSK, these ETFs have amassed close to $200 million in inflows in their first week, according to
Coinotag
, reflecting strong faith in Solana's blockchain and its potential as a major asset.
On the technical front, Solana's price has recently challenged important support and resistance zones. As of Wednesday, the token hovered just above $190, staying over the 4-hour chart's main Pivot Point at $193 after slipping under the 50-period EMA at $195, according to
FXStreet
. Experts caution that a decisive drop below $193 could prompt a decline to the S1 Pivot Point at $183, which aligns with a support line established by October's lows. Conversely, a bounce from $193 could push the price into the $204-$208 supply area, with the next significant resistance at $218. Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) point to increased selling activity, with the RSI falling below 43 and the MACD turning negative.
Solana's appeal to institutions is further enhanced by its staking rewards and network efficiency. Solana Company, which controls more than 2.3 million SOL tokens, reported a 7.03% annualized staking return in October—36 basis points higher than the average of the top 10 validators, according to GlobeNewswire, which also detailed the company's holdings. Their approach of reinvesting rewards using institutional-grade validator systems has earned investor praise, with Pantera Capital's Cosmo Jiang describing it as a "disciplined strategy to maximize SOL per share." Meanwhile, Grayscale's
GSOL
ETF distributes 77% of net staking rewards to its holders, potentially boosting annual returns by 5-6% based on past performance, as reported by Benzinga.
Despite these strengths, caution prevails in the market. According to
a Yahoo article
, traders on Polymarket estimate only a 28% probability that Solana will reach a new all-time high before 2026, with the token currently at $195, down 3.2% over the past day. Maria Carola from StealthEX recognizes Ethereum's lead among institutions but envisions a scenario where Solana acts as the "high-performance execution engine" complementing Ethereum's settlement layer. Should ETF inflows reach the projected $3 billion by year-end, Solana could become the first blockchain since
Ethereum
to achieve significant institutional adoption.
Broader market instability and unclear regulations continue to pose challenges. Bitwise's BSOL ETF started trading at a 1.04% discount, and the SEC has yet to approve additional Solana ETFs from VanEck and 21Shares. Nevertheless, Solana's network—capable of handling 65,000 transactions per second with 99% uptime—remains attractive to both developers and investors seeking high efficiency.