Introduction
Solana is still getting strong support from big investors, even though smaller traders don’t seem as interested right now. While companies like Galaxy Digital and SOL Strategies are buying more SOL, the price has been going up and down without a clear direction. Some believe these big investments could help push SOL’s price higher, but others worry that weak interest from regular traders might slow it down.
Big Companies Are Buying More Solana
Even though Solana’s price has dropped, large companies are still buying more of it. On March 7, SOL Strategies, a company in Canada, purchased 24,000 SOL tokens for $3.3 million. Now, the company owns 250,700 SOL and says it is buying more to help support the SOL network.
The company’s chairman, Antanas Guoga, also said they plan to buy even more SOL if the market drops further. However, because SOL’s price has fallen, the company’s stock price has dropped 51%, from $4.20 to $2.00. Even though they lost value, they are still up 156% since the U.S. election, showing that they still believe in Solana’s future.
Galaxy Digital is Staking Millions in Solana
Another big company, Galaxy Digital, also made a huge investment in SOL. They recently took 282,500 SOL (worth $40.5 million) off crypto exchanges and staked 274,253 SOL (worth $39.15 million). When investors stake SOL, they are locking it up instead of selling it. This helps keep the SOL network secure and usually means that they believe in its long-term success. Even though Solana’s price has been unstable, these big investments show that some investors are confident in its future.
Are Regular Traders Losing Interest in Solana?
While big companies are buying, regular traders don’t seem as excited about SOL anymore. Fewer people are talking about it online, and interest dropped after the TRUMP memecoin boom in January. After the LIBRA memecoin collapsed, many traders lost confidence in SOL . There was a small boost in interest when CME Futures added Solana on March 1, but it didn’t last long. If more traders don’t get involved, SOL might struggle to recover.
Some traders on Polymarket think SOL’s price could drop to $130 by the end of March. However, traders on Deribit believe SOL might reach $200, but they say there is only a 10% chance of that happening.
Can Solana Stay Above Its Key Price Level?
Even though fewer small traders are buying SOL, the $120 price level has been an important support zone since early 2024. If SOL drops to this level again, some investors might step in to buy, helping stop the price from falling lower. Right now, Solana’s future depends on big investors. If they keep buying and holding, the price could go up again. But if regular traders don’t return, it could be harder for SOL to stay strong in the short term.
Conclusion
Solana is still getting strong support from big investors, like Galaxy Digital and SOL Strategies, who keep buying and staking more SOL. But at the same time, smaller traders are losing interest, which could make it harder for SOL’s price to grow. With key support at $120, the next few weeks will be very important in deciding where SOL’s price goes next.
