Solana Faces Institutional Headwinds Despite Strong Fundamentals as SOL Hovers Above $150
Solana (SOL) is still trading above $150 and has gained more than 1.3% in the last 24 hours. However, the market is showing signs of
Quick overview
- Solana (SOL) is trading above $150, with a 1.3% gain in the last 24 hours, but faces institutional reluctance and competitive pressures.
- Despite strong revenue growth, concerns over maximum extractable value (MEV) protocols are hindering institutional interest in Solana.
- Technical analysis indicates critical resistance at $154, with potential upward movement if SOL breaks above $159, while a drop below $144 could lead to lower prices.
- The recent surge in Solana futures volume on CME Group suggests growing institutional interest, contrasting with negative funding rates in perpetual markets.
Solana SOL/USD is still trading above $150 and has gained more than 1.3% in the last 24 hours. However, the market is showing signs of institutional reluctance and competitive pressures that could affect the token’s recovery.
Since late May, the blockchain’s native token has had a hard time getting back to the $180 level. This raises worries about whether a long-term bull run is still possible in 2025. SOL is doing well in terms of revenue and ecosystem growth, but it is facing more and more problems from layer-2 competition and institutional worries over maximum extractable value (MEV) protocols.
SOL/USD Technical Analysis Points to Critical Resistance Levels
Current technical indicators give a mixed picture of where SOL is headed in the near future. The token’s trading range is getting smaller, and the 50-day simple moving average at $154 is acting as immediate resistance. Bulls have effectively defended the 20-day exponential moving average at $149, stopping a bigger drop from happening.
If the price breaks over $159, it might gain momentum toward $168 and maybe even $185, completing an inverted head-and-shoulders pattern with a target price of $192. The four-hour chart, on the other hand, indicates a bearish descending triangle pattern that would start to work if the price dropped below $144. This may send prices down to $137 and then $129.
The shrinking range signals that a big move is coming soon. The direction of the move will depend on whether buyers can push SOL above the downtrend line or if selling pressure breaks through support levels.
CME Futures Volume Breakthrough Signals Growing Institutional Interest
A big change happened when the volume of Solana futures on CME Group went over $4 billion. This shows that professional investors are becoming more interested. Micro Solana contracts have made it easier for smaller market players to get involved, and the rise in futures activity shows that better risk management could lead to less volatility.
This development in institutional futures is different from the negative funding rates in perpetual markets. This suggests that while civilian traders are still negative, professional investors are using regulated derivatives more and more to get SOL exposure.
Institutional Concerns Overshadow Strong Fundamentals
On Monday, SOL’s perpetual futures funding rate went negative, which means that there is more demand for short bets. This is unusual in cryptocurrency markets that are usually optimistic. This change shows that many institutions are worried about Solana’s architecture, especially because of MEV issues that have hindered big players from building on the network.
Robinhood CEO Vlad Tenet is said to have said that they wouldn’t build on Solana because of MEV problems and would rather have “full validator control.” Coinbase has also chosen to use its own layer-2 solutions instead of Solana’s infrastructure in order to have the most control. These actions by institutions could limit SOL’s potential for growth because big financial companies value transaction ordering assurances more than Solana’s speed.
Revenue Leadership Contrasts with Competitive Pressures
Even though institutions are hesitant, Solana’s foundations are still strong. In the second quarter of 2025, the network made $271.8 million, which was more than double Ethereum’s $129.1 million and 64% more than Tron’s. This increase in revenue, together with $460 million in user fees over 30 days, shows that the ecosystem is active in ways other than just trading.
Jito, which is Solana’s biggest decentralized app, has a total value locked (TVL) of 17.92 million SOL. This is a 12% rise from January. The platform’s 66.5% staking ratio is much better than Ethereum’s sub-30% rate, and SOL’s 7.3% annualized staking dividend gives token holders a strong reason to lock up their holdings.
Solana Price Prediction: $180 Target Remains Elusive
The combination of technical and fundamental considerations makes it likely that SOL will have Flow to the $180 level. The negative futures funding rate, along with institutional concerns over MEV and growing competition on layer 2, makes it hard for prices to keep going up.
The current trading range will probably decide what happens with prices in the short term. If the price breaks over $159, it might start a rally toward $168-$185. If it breaks below $144, it could go down to the $129-$137 region. The SEC’s judgment on Solana ETF applications has been delayed, which adds to the uncertainty. However, Bloomberg analysts think that contacts with regulators are a good thing.
To get back to $180 and higher, SOL needs to deal with institutional concerns about MEV while keeping its speed and cost advantages. The token’s potential for growth is limited until these basic problems are fixed, even though the ecosystem is growing and the revenue is high.
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