Amid rising downside risk, Solana [SOL] has struggled to hold above $90 since breaching it. As the broader market signaled recovery, the altcoin jumped to a local high of $94 before a slight pullback.
As of this writing, SOL traded at $90.76, up 5.07% on the daily charts, adding to its 3% weekly gains. Amid this thin bearish structure, institutional investors have been squeezing, attempting to absorb the pressure.
Institutions step in to buy Solana’s dip
Solana recently struggled to make any gains because large entities, both whales and institutions, stepped back.
Some of these investors capitulated and increased spending, while others sat on the sidelines preserving capital. However, sentiment among these two groups has shifted significantly over the past three weeks.
For starters, Solana Spot ETFs have recorded significant and sustained capital inflows, recording net inflows for three consecutive days.
Since recording net outflow in February, SOL ETFs have only recorded inflows. In fact, on the 4th of March, Net Inflow climbed to $19 million, the second-highest inflow since early January.
Such massive inflows showed renewed interest in SOL assets among institutional investors, a key driver of the sustained price rally.
Stablecoin transactions hit $650 billion
While markets and Solana struggled throughout February, the month proved a breakout season for stablecoins. According to the Grayscale report, on-chain activity for Solana’s stablecoin surged to a record high.
Stablecoin transaction volume on Solana climbed to a high of $650 billion, surpassing the record from October 2025 by more than 2x.
This was the largest volume among all other chains in February, reflecting Solana’s rising dominance.
These transactions were backed by over 5.3 million addresses, according to Artemis data. Recently, stablecoins have become major drivers for blockchain adoption, and the rising activity on Solana shows it is positioned for competition.
Even more importantly, sustained network usage reflects the demand for the native token, and a continued rise could positively impact SOL.
Is the demand adequate to boost SOL?
While SOL has recently struggled to keep an upward momentum, the return of institutional investors has strengthened the market structure.
Looking at the bias ratio, the altcoin holds above both short- and long-term deviations, indicating a gradual shift in momentum. Thus, the market has shown signs of a potential recovery from the February slip.
The fact that Bias24 is higher shows that long-term recovery momentum is forming. At the same time, the Awesome Oscillator showed bears losing strength with the momentum shifting bullish.
Together, these indicators signaled a potential trend reversal if the momentum holds. Thus, if the demand witnessed recently sustains, SOL is likely to successfully retest $94 and eye a move above $100.
However, if market liquidity continues to shrink as investors step back, SOL will continue trading between $80 and $91.
Final Summary
- Transaction volume for Solana stablecoins hit a record high of $650 billion, surpassing all other major chains.
- SOL’s momentum is gradually flipping bullish amid increased capital inflows into Solana Spot ETFs.
