• Solana price is near a key $192 support zone, with analysts warning of potential downside risks.
• Galaxy Digital, Multicoin, and Jump Crypto plan a $1B SOL fund to strengthen ecosystem growth and liquidity.
• Bearish sentiment looms as failure to hold the wave (4) zone could trigger a deeper pullback.

Solana is testing its Wave (4) support zone, with analysts warning of further downside risks. Meanwhile, major firms are preparing a large treasury fund to strengthen the ecosystem and support growth. This reflects strong long-term confidence, though short-term volatility keeps the market at a critical stage

At the time of writing, Solana is trading at $197.44, with a 24-hour trading volume of $31.88 billion and a market capitalization of $106.71 billion. SOL has declined -3.02% over the past 24 hours, reflecting the broader uncertainty across digital assets.

Galaxy Digital Leads $1 Billion Solana Fund

According to Bloomberg, Galaxy Digital, Multicoin Capital, and Jump Crypto are preparing to raise $1 billion to establish a dedicated Solana treasury.

This fund would be utilized to strengthen the SOL ecosystem, boost liquidity, and support long-term growth, showing that large businesses continue to see the SOL blockchain as one of the most significant players in the Web3 ecosystem.

Solana Price Struggles at Wave (4) Zone

Crypto analyst More Crypto Online noted that SOL’s price is now challenging its wave (4) support zone. So far, no upside bounce has been validated, and the recent swift drop increases the possibility of a greater pullback. The analyst added that if SOL falls below the $192.39 level, it would confirm the bearish sentiment and could trigger further downside movement.

As large players support SOL with near-term risks noted by analysts, the market is positioned at a critical juncture. Should the billion-dollar fund come to fruition, it would solidify SOL’s long-term prospects; however, in the short term, the price action suggests that volatility may persist.

Also Read | Solana (SOL) Gains Strength: Is a Rally to $300 on the Horizon?

Solana Derivatives Market Sees Big Volume Spike

The Solana futures market registered a massive increase in trading volume, which surged +86.84% to $53.08B. Open interest showed a slight drop of -2.29%, now at $12.46 billion, suggesting that market participants are engaging more in active trading today rather than maintaining long-term positions. This combination highlights the dominance of short-term trading that is currently driving market dynamics.

On the funding side, the OI Weighted rate stands at 0.0092%, indicative of fairly balanced sentiment in the market. The neutral signal indicates that neither long nor short positions are strongly dominating and hints at a stable setup for SOL derivatives in the near term, despite the spike in activity.

Also Read | Solana Beats Ethereum for 10th Consecutive Month in DEX Trading Volume