- Solana trades below 20-day SMA at $159.12, with rising volatility as it nears the lower Bollinger Band support at $139.
- $5B equity credit line boosts institutional SOL accumulation, but technicals indicate caution and possible further downside.
- Key support is at $140–$144; failure to hold may push SOL to $135, while rebound targets range from $153 to $179.
Solana ($SOL) has had renewed pressure, falling by 8% to $146 as momentum weakens and the broader crypto market shows caution. The decline places the token below its 20-day simple moving average (SMA), which sits near $159.12.
This downward shift comes as DeFi Development Corp revealed a $5 billion equity line of credit, aimed at supporting its Solana-based treasury. The agreement with RK Capital Management allows DFDV to raise funds over time, enhancing its SOL-per-share metric through strategic accumulation and staking. Despite this institutional move, technical indicators show mixed sentiment, with Solana sliding toward a key support zone.
Bollinger Bands Suggest Rising Volatility
From the current technical levels, Solana’s price is nearing the lower Bollinger Band at $139, a level that has previously attracted short-term buying. Meanwhile, the upper and middle bands are at $178 and $159, respectively.
With SOL trading below the SMA, bearish sentiment has gained ground. The MVRV Z-Score, at 28.878, points to historically high unrealized profits. This indicates potential for increased profit-taking, especially after SOL’s rally above $200 earlier in the year.
This volatility has caused SOL to trade between $140 and $180. However, the latest price rejection at the SMA strengthens the current downward movement. The daily trading volume of 391.55K SOL also shows moderate interest, with no signs of a sharp reversal yet.
Institutional Moves Aim to Boost Solana Exposure
The $5 billion ELOC announcement adds a corporate outlook to SOL’s price behavior. DeFi Development Corp plans to use the funds to expand its SOL reserves. It stakes these reserves through validator nodes, collecting rewards and supporting Solana’s infrastructure. This direct exposure to SOL supports the company’s proprietary SPS ratio. However, market response is cautious, as the market focuses on technical zones.
Analyst Rose noted that Solana has completed a breakout and retest from a descending channel. The structure suggests a reversal, yet short-term sentiment depends on the $140 support. Entry points between $150–$160 appear favorable, though protection below $140 is essential.
Support Zones and Trade Setups
According to analyst Andrew Griffiths, SOL has returned to a demand zone near $144–$145. He identifies a possible upside if this level holds. His setup includes an entry at $145.06, a stop loss at $139.21, and targets at $160.65, $168.22, and $179.32.
These levels indicate alignment with earlier resistance and structure based zones. Key levels will determine price direction in the short term. Failure to maintain support near $140 could accelerate downside movement.
However, any sustained rebound may challenge the $153–$158 range. On the upside, a rebound from $140–$139.80 support could push SOL to $153, $158, or even test $159.12 resistance.
A drop below $139.80 may extend losses toward $135 or lower, especially if volume and sentiment remain weak. Solana’s short-term trend depends on its ability to hold current support. Technical pressure persists, despite institutional inflows and staking efforts.
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