Summary Solana rises above $190 as institutional inflows increase. Grayscale cites Solana’s $5 billion annualized fee revenue in new analysis. Key resistance seen near $201–206; support holding firm around $185. By Parshwa Turakhiya Solana extended its rebound on Monday, climbing more than 2.5% to trade near $192 as institutional interest in the network strengthened. The gains followed a new report from Grayscale highlighting Solana’s efficiency and competitive cost structure, noting its transaction throughput and scalability advantages compared with other major smart contract platforms. With annualized fee revenue now exceeding $5 billion, Solana continues to solidify its position as one of the fastest-growing blockchains underpinning decentralized finance, consumer technology, and telecommunications applications. Institutional inflows reinforce market confidence On-chain and exchange data show steady accumulation among larger investors. Net inflows of $22.9 million were recorded on October 20, reflecting sustained institutional participation despite recent volatility. The pattern supports broader sentiment that Solana’s network fundamentals remain strong. Analysts point to its expanding ecosystem of applications and the growing traction of its validator infrastructure as evidence that institutional adoption is maturing. Grayscale’s latest report framed Solana as a high-throughput, low-cost alternative to Ethereum, citing its strong developer base and efficient execution model. The network’s ability to generate substantial fee revenue despite lower transaction costs demonstrates both scalability and user engagement. These factors, combined with an active DeFi and consumer-app base, have kept Solana among the top performers in the digital asset market. Technical levels show consolidation within a long-term uptrend Solana’s price action remains contained within a long-term ascending channel that has guided its trend since late 2022. The recent pullback toward $185 tested both the lower channel boundary and the 200-day exponential moving average at $186, where buying activity reemerged. The reaction from this level reinforces the view that the broader uptrend remains intact. SOL price dynamics (Source: TradingView) Overhead resistance is now concentrated at $201 and $206, aligning with the 20- and 50-day moving averages. A daily close above this range would indicate renewed upside momentum and could set up a move toward $220 and $250, where previous rallies stalled earlier this quarter. The RSI has turned higher from near-neutral territory, showing that momentum is gradually building. Meanwhile, the On-Balance Volume indicator remains elevated, confirming accumulation during the latest consolidation phase. If the token fails to maintain its hold above $185, downside risks could reemerge toward $168, which aligns with the midline of the channel and prior support. A decisive break below that level would weaken the current structure and potentially open the door to $150. Outlook As previously discussed, Solana remains one of the few major networks combining strong technical support with solid on-chain fundamentals. The defense of the $185–186 level, alongside improving inflows and resilient fee generation, reinforces confidence in its long-term trend. Traders will watch the $200–206 resistance zone closely, as a sustained breakout above this area would confirm a shift back to bullish momentum and position the asset for a retest of $220 and $250. For now, Solana’s technical structure, rising institutional participation, and network growth suggest that it remains well supported within its broader uptrend. This material may contain third-party opinions; none of the data and information on this webpage constitutes investment advice according to our Disclaimer . While we adhere to strict Editorial Integrity , this post may contain references to products from our partners. Original Post
