SOL Stabilizes At $170 Amid Massive $367M Institutional Inflows

Institutional buyers accumulated $367M in SOL despite recent bearish technical signals.

SOL currently tests key support between $170 and $175 after breaking key patterns.

Short liquidations above $185 may trigger rapid upside if bullish momentum returns.

Solana's SOL is facing a critical test. After slipping below its 20-day moving average, SOL struggled to hold ground, trading between $178 and $181. But the story goes deeper than just price action. Institutions aren’t walking away. In fact, they’re doubling down. While retail traders grow cautious, whales have made bold moves. One of the largest buyers, DeFi Dev Corp, recently scooped up over 181,000 SOL tokens, pushing their total holdings past $218 million. Their average entry sits comfortably at $155.33—well below current prices.

Key Technical Pressure Points Clash With Whale Confidence

Exchange data reveals over 2 million SOL tokens—worth nearly $367 million—moved off exchanges in the past week. That’s not something you see in a weak market. These kinds of outflows signal growing confidence. When tokens leave trading platforms, they typically head to cold wallets, suggesting long-term accumulation. While the chart shows red candles, the blockchain tells a different story. Despite the bullish accumulation signs, technical signals remain murky.

Solana recently slipped below an ascending broadening wedge—usually a bearish pattern. The price now tests a strong horizontal support zone between $170 and $175. This level has acted like a trampoline for two months, bouncing SOL back each time it touched. If this support breaks, the token could tumble toward $165. On the other hand, holding this level might set the stage for another breakout.

Funding rates also tell a tale of shifting sentiment. Throughout July, SOL maintained positive rates—derivatives traders were betting long. But those rates now lean toward negative territory. That signals a growing wave of shorts, which could increase downward pressure. However, this isn't entirely bearish. Short positions between $185 and $190 have built a potential liquidation wall. If SOL rallies just 5% from current levels, it could trigger a cascade of short liquidations.

Mixed Market Signals Keep Traders on Edge

Solana sits in a strange place—caught between bullish fundamentals and bearish technicals. Institutional players are clearly hungry. Yet traders on exchanges grow nervous. That split creates uncertainty. If funding rates dive into negative territory, it will mark a significant sentiment shift. More shorts may pile in, betting against SOL. But that might also load the spring for an explosive reversal.

At $181, SOL stands on shaky yet hopeful ground. If price breaks below $170, traders might eye $165 as the next stop. But if whales continue accumulating and spot market confidence holds, SOL could recover above $190 and retest resistance near $200. This tug-of-war between big money and market fear makes Solana one of the most compelling assets to watch right now. Don’t just watch the candles—watch the wallets. Whales don’t play guessing games.