Solana entered November trading at $198, backed by $381 million in institutional inflows since early October and a technical pattern that suggests a potential rally toward $232 if the cryptocurrency breaks through resistance at $213.
What to Know:
- Institutional investors poured more than $381 million into Solana since early October, exceeding the combined inflows of all other alternative cryptocurrencies
- Long-term holders reduced selling pressure in recent weeks, marking a shift from the persistent liquidation that weighed on prices through September and mid-October
- November has historically delivered strong returns for Solana, with an average monthly gain of 13.9% and a median 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 into Solana, according to CoinShares data. That figure surpassed the combined institutional inflows for every other altcoin during the same period.
The buying continued even as October proved bearish for most digital assets.
This steady accumulation signals that large-scale investors view Solana as a dominant force in the Layer-1 blockchain sector, where competing networks process transactions directly without relying on secondary scaling solutions.
The capital influx came during a month when many retail traders pulled back. Institutions, however, maintained their positions and added to them.
Long-Term Holders Ease Selling Pressure
A separate metric tracking long-term holder behavior shows a notable shift. The HODLer Net Position Change, tracked by Glassnode, indicates that veteran Solana investors have sharply reduced their selling activity in recent weeks.
Through September and half of October, persistent selling from these long-term holders pressured prices lower.
The recent decline in this selling pressure represents a meaningful change in 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, Solana's technical foundation could strengthen significantly. The transition from selling to holding or buying typically supports upward price movement.
Historical data from CryptoRank adds context to current expectations. November has proven favorable for Solana investors in previous years, producing an average monthly return of 13.9%. The median return for the month stands at 27.5%, suggesting that in some years the gains exceeded the average considerably.
This seasonal strength has created market expectations that may attract additional investment as the month progresses.
Technical Pattern Suggests Breakout Potential
Solana traded just below the $200 level at the time of analysis. The price action has formed what technical analysts call a flag pattern, characterized by a period of consolidation following a strong move. These patterns often resolve with a breakout in the direction of the prior trend. A confirmed breakout would require Solana to push through resistance at $213. Success at that level could open a path toward $232 and potentially higher targets. The flag pattern typically indicates continuation of the previous upward momentum once the consolidation phase ends.
Risk remains on the downside if the pattern fails. A rejection at $200 could send prices back to $175, invalidating the bullish scenario. The cryptocurrency market's volatility means that technical patterns do not guarantee outcomes, though they provide probabilistic frameworks for understanding potential price movement.
Layer-1 blockchains like Solana compete on transaction speed, cost, and network capacity. Solana processes transactions directly on its main chain rather than relying on secondary layers, positioning it as an alternative to Ethereum for applications requiring high throughput.
The recent institutional interest suggests investors believe Solana's technical architecture gives it competitive advantages in attracting developers and users.
Final Thoughts
Solana's November setup combines institutional backing, easing long-term holder selling, and favorable seasonal patterns. The cryptocurrency faces a key test at the $200 and $213 resistance levels that will determine whether the bullish case plays out or prices retreat to lower support zones.
