Solana attracts $381 million in institutional flows, surpassing all other altcoins combined

Solana entered the negotiations in November at $198, backed by $381 million in institutional flows since early October and a technical pattern suggesting a possible rally towards $232 if the cryptocurrency breaks the resistance at $213.

What to Know:

• Institutional investors injected more than $381 million into Solana since the beginning of October, surpassing the combined flows of all other alternative coins.
• Long-term holders reduced selling pressure in recent weeks, marking a shift from the persistent liquidation that affected prices throughout September and mid-October.
• November has historically provided strong returns for Solana, with an average monthly gain of 13.9% and an average return of 27.5%.

Institutional Money Flows into Layer 1 Blockchain

The numbers tell a story of conviction. Since early October, institutional investors moved more than $381 million in Solana, according to data from an analytics platform. That figure surpassed the combined institutional flows of all other altcoins during the same period.

Buying continued even when October turned out to be bearish for most digital assets.

This constant accumulation indicates that large-scale investors see Solana as a dominant force in the layer 1 blockchain sector, where competing networks process transactions directly without relying on secondary scaling solutions.

The influx of capital arrived for a month when many retail traders withdrew. Institutions, however, maintained their positions and increased them.

Long-Term Holders Reduce Selling Pressure

A separate metric that tracks the behavior of long-term holders shows a notable change. The Net Position Change of HODLers, tracked by an analytics platform, indicates that veteran Solana investors have drastically reduced their selling activity in recent weeks.

Throughout September and mid-October, the persistent selling by these long-term holders put downward pressure on prices.

The recent decrease in this selling pressure represents a significant change in the market structure. When experienced holders stop liquidating positions, it often precedes sustainable price advances.

If this pattern extends into November and transforms into net accumulation, the technical base of Solana could strengthen significantly. The transition from selling to holding or buying typically supports the upward movement of prices.

Historical data from an analysis platform adds context to current expectations. November has been favorable for Solana investors in previous years, producing an average monthly return of 13.9%. The average return for the month is at 27.5%, suggesting that in some years the gains exceeded the average significantly.

This seasonal stronghold has created market expectations that may attract additional investment as the month progresses.

Technical Pattern Suggests Potential Breakout

Solana was trading just below the level of $200 at the time of analysis. The price action has formed what technical analysts call a flag pattern, characterized by a period of consolidation after a strong move. These patterns often resolve with a breakout in the direction of the previous trend. A confirmed breakout would require Solana to surpass the resistance at $213. Success at that level could open a path towards $232 and possibly towards higher targets. The flag pattern typically indicates the continuation of the previous upward momentum once the consolidation phase ends.

The risk remains to the downside if the pattern fails. A rejection at $200 could send prices back to $175, invalidating the bullish scenario. The volatility of the cryptocurrency market means that technical patterns do not guarantee results, although they provide probabilistic frameworks to understand potential price movements.

Layer 1 blockchains like Solana compete in transaction speed, cost, and network capacity. Solana processes transactions directly on its main chain instead of relying on secondary layers, positioning itself as an alternative to other platforms for applications that require high performance.

The recent institutional interest suggests that investors believe Solana's technical architecture gives it competitive advantages to attract developers and users.

Final Reflections

The Solana setup in November combines institutional backing, a reduction in long-term holder selling, and favorable seasonal patterns. The cryptocurrency faces a key test at the resistance levels of $200 and $213 that will determine whether the bullish case develops or prices retreat to lower support areas.