Solana's (SOL) Price Potentially Rebounds to $200 Following Technical Support at $175

Solana's (SOL) Price Potentially Rebounds to $200 Following Technical Support at $175

Solana, the second-largest decentralized exchange (DEX) ecosystem, is experiencing growing institutional interest, with several key developments shaping its future.

Bloomberg analysts project a 90% or greater likelihood of SEC approval for Solana spot ETFs by the end of the year. This potential approval could drive even stronger demand for the network's native token, SOL, which is currently hovering around the $175-$178 range, a zone identified as the "golden pocket" support zone.

The attractive 7.3% native staking yield could further fuel demand once Solana spot ETFs launch in the United States. Solana's network fee generation has shown robust growth, increasing 22% from the previous month to reach $35.6 million over the past 30 days.

Several decentralized applications on Solana have individually surpassed $2 billion in TVL, including Kamino, Jito, Jupiter, Sanctum, Raydium, and Marinade. This growth underscores Solana's growing dominance in the DeFi space.

Institutional players are already heavily invested in SOL. Treasury firms like DeFi Development Corp hold $260 million in SOL, while public companies own $675 million. Circle’s recent issuance of nearly $750 million USDC on Solana has also boosted liquidity, indicating strong institutional and corporate engagement with the network.

Technical analysis shows SOL testing the "golden pocket" support zone, with potential for a rebound toward $200-$210. However, SOL has dropped 15.5% since reaching $209.80 last Thursday, entering oversold territory on the Relative Strength Index (RSI) heatmap, with readings around the mid-30s. The golden pocket support near $175-$178, combined with oversold RSI readings, suggests conditions may be ripe for a potential rebound.

Institutional interest in Solana has grown, with open interest in SOL futures climbing to $10.7 billion, surpassing XRP futures despite XRP having an 81% larger market capitalization. $2.8 billion is currently invested in Solana exchange-traded futures and products.

Technical analysts are watching the $185-$188 zone as an immediate resistance area for SOL. A successful break above this trendline resistance could shift momentum quickly in favor of buyers. The current price correction appears to be a healthy reset rather than a structural breakdown, as long as the higher-low pattern remains intact above the $170 support level.

The total value locked on the Solana network has reached $12.1 billion this week, representing a 20% increase over the past two months. Solana has maintained strong DeFi dominance with $12.1 billion in Total Value Locked (TVL), up 20% in two months.

These developments suggest that Solana is poised for continued growth, with the potential approval of spot ETFs and growing institutional interest positioning the network for a strong finish to the year.

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