The Solana blockchain finds itself caught between two powerful market forces this Friday. On one side, substantial selling pressure from a previously dormant major holder is pushing the price downward. On the other, significant institutional partnerships and technical advancements are strengthening the network’s fundamental value proposition. This clash has left the cryptocurrency battling to maintain a critical price floor.
Institutional Adoption Gains Momentum
Despite recent price weakness, Solana’s ecosystem continues to mature through high-profile collaborations. In a key development this week, South Korea’s Hanwha Asset Management entered a partnership with the Solana Foundation. The alliance aims to develop exchange-traded products (ETPs), signaling growing long-term confidence from the traditional finance sector.
Concurrently, Ondo Global Markets is expanding its use of the blockchain, launching over 200 tokenized U.S. stocks and ETFs on the network. This move leverages Solana’s high transaction speed for round-the-clock trading of traditional assets. These strategic expansions are supported by ongoing technical upgrades like “Alpenglow” and the new validator client “Firedancer,” designed to enhance network stability and performance.
Significant Whale Activity Weighs on Price
The current decline to $127.39 is linked directly to on-chain data revealing substantial movements by a so-called “whale.” A large investor, whose wallet had been inactive for nearly two years, unstaked approximately 98,000 SOL—valued at over $12 million—and has begun liquidating this position. This sudden influx of supply is absorbing available market liquidity and currently hindering a price recovery.
Should investors sell immediately? Or is it worth buying Solana?
From a technical analysis perspective, the situation remains tense. Market experts identify the $120 zone as the bulls’ final defensive line. A breach below this level could open a path toward the psychologically significant $100 mark. Conversely, a sustained breakout above the resistance level at $140 is viewed as a necessary condition for a trend reversal.
Legal Challenges Create Headwinds
The positive institutional developments are partially offset by emerging legal uncertainties. A recent class-action lawsuit targets the Solana Foundation, alleging that “crypto-casino” applications and opaque trading practices like maximal extractable value (MEV) disadvantage retail investors. This legal cloud acts as a counterbalance to the fundamental progress, contributing to a cautious stance among some investors who are keeping capital on the sidelines.
For market participants, the immediate focus rests on defending the $120 support level. The longer-term outlook, however, will likely be determined by how quickly the integrations from partners like Ondo and Hanwha can generate tangible value on the blockchain, potentially offsetting the current oversupply in the market.
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