Institutions Bought, but Price Stagnant... Solana Struggles in a Range-Bound Market

▲ Solana (SOL) / ChatGPT-generated image

Solana (SOL) has received a strong bullish catalyst in the form of capital inflows from institutional investors. However, heavy selling by whales and sluggish price movement are making it difficult for the token to break out of its range.

According to a February 26 report by cryptocurrency-focused outlet BeInCrypto, approximately $30.86 million flowed into spot Solana ETFs, marking the largest inflow in the past two and a half months. Despite this, the price has yet to overcome key resistance levels. While institutions are maintaining a positive outlook on Solana and expanding their positions through regulated investment products, on-chain data shows that actual network investors are moving in the opposite direction by reducing their holdings.

Data from on-chain analytics firm Glassnode reveals that around 3.9 million SOL, worth more than $298 million, has flowed into exchanges over the past three weeks. Typically, deposits of digital assets to exchanges signal selling pressure, suggesting that investors are using the current rebound as an opportunity to realize profits or minimize losses. This quiet wave of whale sell-offs is offsetting the upward momentum fueled by institutional capital and is emerging as a key factor preventing a full-scale rally in Solana.

Technical indicators are adding to the tense atmosphere. On the Solana chart, the Squeeze Momentum Indicator—often signaling a surge in volatility—has been activated, indicating that a decisive price move may be imminent. The black dots appearing on the indicator suggest the potential for a bullish squeeze. However, if buying demand fails to support the expansion in volatility, downside pressure could intensify.

Currently, Solana is trading within a narrow range between the $88 resistance level and the $77 support level, searching for direction. Multiple attempts to break above resistance have failed, reflecting a tight tug-of-war between buyers and sellers. Experts note that while continued institutional inflows are helping to defend the support level, a near-term breakout above the range may prove difficult unless exchange inflows begin to subside.

For Solana to reverse its subdued sentiment and enter an upward trend, firmly breaking and holding above the $88 resistance level is the top priority. If it surpasses $88, the path could open toward the next target at $97 and eventually a retest of the psychologically significant $100 mark. Market participants are closely monitoring both the scale of institutional inflows and the trend of whale deposits to exchanges to assess whether Solana’s fundamentals are truly improving.

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