Solana Adoption at All-Time Highs, BuCan It Hold Above $100?

Key Highlights:

• Solana adoption hits record 11.09M holders amid growing demand
• SOL tests crucial $110 support after rejection from $185–$200 zone
• Retail sentiment stays bullish while Smart Money turns bearish

Network adoption of Solana is rising, with Glassnode data revealing a significant milestone. The number of addresses holding 0.1 SOL or more surpassed 11.09 million.

The stable SOL price of $127.58 reflected increasing retail interest in Solana. This stability also underscored growing long-term confidence in the ecosystem as the number of holders continues to climb.

Despite the bullish on-chain growth, Solana stands at a crucial support threshold. This will determine if the price can sustain itself above $110 or fall beneath $100. The FTX bankruptcy estate transferred $3.3 million worth of SOL, which creates potential selling pressure on the market.

Additionally, Market Prophit shows savvy money investors holding bearish views about Solana despite retail traders remaining optimistic.

Solana Faces Major Support Test Near $110

An analysis by Crypto Patel highlighted SOL price instability. It faced rejection at the $185–$200 resistance area. This zone has historically acted as a strong barrier. Currently, Solana maintains a position at $127 while it approaches the $110 support mark.

If this level fails, the next important support area between $84 and $100 exists. This represents a potential 58.6% decline from its recent peak. A deeper fall to $40 represents previous accumulation points.

The SOL Spot Inflow/Outflow chart from Coinglass highlighted a notable trend among investors. They have been withdrawing significant amounts of SOL from exchanges. This behavior suggested a preference for holding assets rather than selling them.

However, the $300M+ exchange deposit in mid-January has typically increased selling pressure on the market. Meanwhile, SOL price may experience stability or upward movement if exchange outflows remain higher than inflows.

Adding to the uncertainty, Arkham Intelligence reported that  FTX transferred $3.3 Million in SOL assets. This created doubts about the potential liquidation of these funds.

The ongoing creditor repayment at FTX demands traders to track token sales as large transactions can generate short-term market volatility. It depends on whether funds are sold, staked, or transferred to institutional investors.

Sentiment Split: Retail Bulls vs. Institutional Bears

Market Prophit data shows retail traders have a bullish outlook on Solana, with a crowd sentiment score of +0.07. This demonstrated that tiny investors believe in the token’s long-term value potential.

The smart money sentiment shows institutional investors’ negative outlook on Solana, measured at -1.83. This indicated that they are actively reducing their exposure to the asset.

The opposing views between retail traders and institutional investors frequently result in heightened market price swings. Solana’s recovery potential depends on rising retail market demand. SOL price could see positive movement if major exchange users withdraw their assets.

However, increasing institutional selling would make it difficult for Solana to maintain positions above essential support areas.

An analysis by Market Periodic shows that the Relative Strength Index (RSI) stands at 42.18. This signaled that SOL was moving toward an oversold zone. While the Awesome Oscillator (AO) maintains negative momentum, potential green bars indicate a possible trend reversal.