TLDR
- DeFi Dev Corp purchased 65,305 additional SOL, bringing total holdings to 317,273 SOL valued at approximately $47.6 million
- Solana price currently trading at $148, down from $154 despite recent 10% increase in less than a week
- Technical analysis suggests potential for SOL to reach $176, completing an inverse head-and-shoulders pattern
- The Solana Foundation announced a new validator policy to strengthen network decentralization
- Institutional interest in Solana is growing with Galaxy Digital reinvesting $106 million from Ethereum into SOL
Solana’s price retreated below the $150 mark on Thursday after briefly touching $154 the previous day. The cryptocurrency is currently trading at $148, representing a pullback from its recent gains of over 10% in less than a week.
The downward movement comes despite growing institutional interest in the SOL token. This price action mirrors a broader recovery trend across the cryptocurrency market driven by improving investor sentiment.
DeFi Development Corporation (DeFi Dev Corp) announced a purchase of approximately 65,305 SOL on Thursday. The acquisition, valued at around $9.8 million, brings the company’s total holdings to 317,273 SOL, worth approximately $47.6 million including staking rewards.
A portion of the purchased tokens includes staked SOL, which the company acquired through BitGo’s over-the-counter (OTC) desk. DeFi Dev Corp plans to lock these tokens to generate native yield.
Institutional Momentum Building
Joseph Onorati, CEO of DeFi Dev Corp, highlighted the strategic nature of the purchase. “This is a clear example of the strategic execution we’ve built our treasury strategy around. By gaining access to locked discounted inventory through a trusted partner like BitGo, we’re able to accumulate some of our SOL below market prices while deepening our alignment with the Solana ecosystem,” Onorati said.
The locked SOL tokens acquired by DeFi Dev Corp fall under contractual restrictions, typically from vesting schedules, venture allocations, bankruptcies, or project-specific lockups. While these tokens cannot be transacted on-chain, they can be traded via OTC desks and are available to qualified investors.
DeFi Dev Corp is not alone in showing interest in Solana. Galaxy Digital recently adjusted its portfolio by divesting $106 million in Ethereum (ETH) and reinvesting it in Solana.
Additionally, SOL Strategies completed a $500 million convertible notes issuance agreement with ATW Partners this week. The investment entity focuses on acquiring and staking SOL through its validator operations.
This growing institutional backing has helped Solana rally alongside Bitcoin (BTC), outpacing Ethereum (ETH) in weekly gains. The momentum could make SOL more attractive to retail investors looking to capitalize on the bullish trend.
New Validator Policy Enhances Decentralization
On April 23, the Solana Foundation announced a new policy affecting validators within its Delegation Program. The foundation will implement stricter onboarding and offboarding criteria designed to reduce dependency on its delegation and promote broader community involvement.
Ben Hawkins, Solana’s head of the staking ecosystem, explained that for every new validator added to the Solana Foundation Delegation Program (SFDP) mainnet delegation, three existing validators will be removed if they meet specific criteria.
Validators must be eligible for delegation from the Solana Foundation on the mainnet for at least 18 months. They will be removed if they hold less than 1,000 SOL in stake outside the Foundation’s delegation.
This initiative aims to decrease the number of validators that solely rely on the foundation’s stake. The policy change underscores the foundation’s commitment to driving and maintaining a robust and decentralized network.
Technical Outlook Points to Potential Gains
From a technical perspective, Solana’s price is showing signs of a potential breakout. The daily chart highlights the formation of an inverse head-and-shoulders pattern, suggesting a possible 32% move to $176.
This target aligns with the height of the head and shoulders pattern, extending from the neckline to the head, and is extrapolated above the breakout point.
Solana’s price position above the 50, 100, and 200-day Exponential Moving Averages (EMA) reflects a bullish outlook, which could drive the token to higher levels.
The uptrend could continue if bulls reclaim the $150 level. However, the Moving Average Convergence Divergence (MACD) indicator shows signs of exhaustion, potentially extending the reversal toward support at $140.
Volume has declined compared to the previous day when Solana rallied to $154. Beyond the $140 support, the 50-day EMA at $139 could stabilize SOL, possibly preventing a larger drawdown to the 100-day EMA at $133.
Over the past two weeks, the Solana price has bounced from $95.26 to $150.9, representing a 58% increase in trading value. The bullish upswing broke the last swing high resistance of $147, signaling a change in market dynamics.
If the breakout holds above the breached resistance, buyers could push for another 18% gain, challenging the $180 barrier. Conversely, if sellers break the $147 floor during an anticipated retest, the prior breakout could be marked as a false breakout or bull trap.
