Despite the recent correction, Solana (SOL) continues to receive significant support from institutional investors. With retail market participants also remaining positive on the altcoin, SOL has a good chance of returning to $200 before June.
Institutions have faith in Solana again
Historically, the actions of institutional investors have had a noticeable impact on Solana’s price. According to CoinShares, the asset saw $11.1 million in inflows this month, making SOL the second altcoin after Chainlink (LINK) in institutional portfolios.
If the trend continues, it will only be a matter of time before the token price rises to a new annual high. However, retail market participants are also hoping for a Solana rally.
This can be seen in open interest, which over the past week has seen open interest rise from $1.77 billion to $2.5 billion. Meanwhile, since the funding ratio is positive, it can be argued that most of the funds went into long contracts, or longs.
SOL Price Forecast: Key Resistance Is Near
At the time of writing, Solana has bounced off the $169 support and the price is trading at $180. The next important resistance is located at $191. In addition, a breakout and consolidation above it will allow continued growth.
If SOL confirms $200 as a support level, the altcoin price could reach a new peak in 2024. However, weakening momentum will lead to the loss of support at $175. In this case, the asset will face a correction to $169. And if this level does not hold, Solana risks falling to $156.
SOL and JUP Introduce the Giant Unified Markets Initiative (GUM)
The Jupiter Swap has initiated the Giant Unified Market Initiative where its primary endeavor is to merge all assets into a singular atomic market. However, this will render all these assets accessible to the masses at a fraction of a cent. This is a privilege for all Solana users empowered by Jupiter.
The concept is to have all these assets cataloged on Jupiter which will attract more assets towards Solana. Not only will this enhance easy access to the world, but the action will propel more value towards both SOL and JUP.
This initiative will centralize all types of tokens to a central hub. Thus, from memecoins, real-world assets (RWA_), stocks and forex, the aim is to bring all these assets to Solana and list them on JUP. Hence, more users can transact across all these markets atomically.
Jupiter celebrates this step as a grand vision of finance for the crypto exchange platform. This vision will now be actualized right there on the Solana blockchain network. A realm where highly liquid markets for stocks, RWAs, forex, and crypto (native or wrapped) are nearly within our grasp.
