Despite its free fall, why is Solana drawing institutional investors?

Solana defies logic. Its price collapses, but institutions accumulate… Between rising ETFs, tokenized RWA, and ambiguous technical patterns, SOL remains in the spotlight. Why? Let’s dive behind the scenes of a crypto paradox that intrigues the markets.

Crypto: Despite the decline, why do institutions continue to purchase Solana?

Solana (SOL) falls below $70, but institutional flows explode with over $7 million in one week for dedicated ETFs! Moreover, Morgan Stanley files an S-1 for its MSOL ETF. Worse (or better?), the crypto network becomes the leading blockchain for RWAs, with 285,000 holders thanks to the tokenized IPO of SpaceX. The paradox is striking because while institutions accumulate Solana for the long term, retail traders reduce their exposure.

Proof is the drop in Open Interest on SOL futures, which fell from 5.18 to 4.85 billion in one week. Consequently, Solana shows technical weakness (MACD in bearish territory, RSI at 33) but with solid fundamentals. An opportunity for the bold or a trap for the reckless? The answer will depend on Solana’s ability to turn its potential into performance.

Can SOL Explode in the Coming Days?

On the chart, Solana forms a “descending wedge”, a pattern that often precedes violent rebounds. For a bullish reversal, a break above $75.63, then $83.50, is needed. The goal here is to reach $100 upon confirmation. But beware! The support at $60.13 is critical. Indeed, a break below would open the path to $46.90 and $51.12, a technical gap magnetic for the SOL crypto.

With $13 million in liquidations in 24 hours, selling pressure is real. So, explosion or collapse for Solana? If ETFs continue to attract funds, SOL could rebound quickly. However, if the overall crypto market collapses, even Solana’s fundamentals won’t be enough. Verdict… 50% chances for each scenario. Traders therefore must wait for a clear signal before positioning themselves.

Solana embodies the 2026 crypto dilemma. Technical weakness against fundamental strength… Institutions are betting big, but the market hesitates. And you, do you think SOL can defy gravity, or is it a bubble ready to burst?