The Need for Institutional Support for Solana
Despite rapid growth in recent months, Solana is currently struggling to attract institutional investors’ interest. In May, capital inflows into the blockchain amounted to only $0.5 million, far from the $23.9 million generated by the competing project SUI. This relative lack of interest is mainly due to the appeal of new blockchains offering better opportunities for developers.
This lack of institutional support could result in limited capital inflows in the coming months, a trend that could impact Solana’s long-term growth. However, individual investors and whales still seem confident in the potential of the altcoin. The balance of SOL on exchanges has indeed decreased by 4.13 million tokens over the past month, indicating sustained accumulation.
Furthermore, SOL Strategies, a Canadian company, recently announced plans to raise $1 billion to purchase SOL tokens. This is evidence that institutions are still betting big on Solana’s potential.
Outlook for SOL Price in June
Currently, Solana’s price stands at $164, up 11.5% since the beginning of May but down 12% from its monthly high. Given these mixed signals, it is expected that Solana will range between $161 and $178 in June, with key levels requiring a boost from the overall market to be surpassed.
However, if Solana manages to sustainably break the $178 resistance, the price could then rise to $188. This bullish scenario would be supported by the imminent formation of a “Golden Cross,” a technical signal typically associated with a resurgence of positive momentum.
But investors should bear in mind that June has historically been a bearish month for Solana, with a median return of -8.97% over the past five years. If this trend continues and market sentiment turns negative, Solana could fall to $150 or even $144, weakening the bullish thesis.
With a Point of Control at $140, the decline of SOL should be halted by increased demand in this area. The 3-day Woodies CCI must perform a Zero Line Reject to allow SOL to rebound. The next 3 days will be crucial for SOL.
Despite a mixed May, Solana remains a cryptocurrency to watch closely in June. If the altcoin manages to break the key resistance at $178, its price could surge. However, investors must remain cautious about a potential pullback, given Solana’s bearish history this month. The balance between institutional and individual support will be crucial for the price evolution in the coming weeks.
