DeFi Development Corp has secured a $5 billion equity line of credit (ELOC) to expand its SOL reserves, adding favor to the long-term Solana price outlook with clear institutional conviction.
Based on the agreement, the real estate platform-turned Solana treasury company will have the right—but not the obligation—to sell up to $5 billion in shares to stock up on the altcoin.
The purchase is set to have a trickle effect, opting to “raise capital gradually, when it’s strategically advantageous, rather than locking in one-time pricing during volatile markets.”
However, accumulation could begin sooner rather than later. With Solana still trading 50% below its February all-time highs, current levels may offer a compelling entry point.
With a recent SEC request for SOL ETF issuers to submit amended S-1 filings within a week, putting approval on track for July, the doors may soon open to inflows from traditional markets.
Solana Price Analysis: Could Institutional Demand Push a New SOL High?
Demand from traditional investment markets could give Solana the push it needs to break out of a massive cup-and-handle pattern forming since 2021.
The Solana price currently trades within the descending channel forming the handle, with its last upward attempt falling short, it remains locked in a downtrend.
SOL / USDT 1-week chart, 2021 cup-and-handle pattern. Source: TradingView, Binance.That said, with potential support at the 0.5 Fibonacci retracement level—a zone typically viewed as a prime accumulation range—$140 could prove a potential bottom for the next leg up.
This level also aligns with the lower support of a smaller ascending channel forming since the mid-April market bottom.
A bounce here would affirm the structure and establish a key confluence zone for a breakout attempt.
In the weakest bullish scenario, a confirmed cup-and-handle breakout projects a technical target of $430, in line with the 3.618 Fibbonaci level—a 128% gain from current levels.
While momentum indicators have weakened, they have yet to flip decidedly bearish. The MACD line still holds a narrow lead above the signal line, and the RSI has stalled just below neutral at 45.
While their current downtrends are both indicative of building bearish momenumn, the balance remains delicate. Neither buyers nor sellers have full control.
A potential SOL ETF approval in July—and the institutional demand it may unlock—could tip the scales in favor of a bullish continuation.
While this bullish case is a far cry from overtaking Bitcoin, it sets a long-term precedent that could set Solana on the path to flip Ethereum to challenge the leading cryptocurrency.
In the meantime, continued sell pressure could see the ascending channel break down, forming a new downtrend to retest lower supports or the handle’s base.
Traders Have 3 Days to Make the Most of the Next Solana Rally
New ICO Solaxy ($SOLX) could be the biggest beneficiary of a Solana price breakout as its first-ever Layer-2 scaling solution, filling a critical gap in the ecosystem.
Solana has long lacked this capability, limiting its DeFi and cross-chain use case—until now.
By processing transactions off-chain and finalizing them on Solana, Solaxy significantly reduces congestion and lowers transaction costs, while offering seamless interoperability across both blockchains.
With almost $50 million in its ongoing presale, investors are already rallying behind the project. When demand for Solana returns, it could be the one to reap the fresh ecosystem liquidity.
There are just under 3 days before the phase ends, unlocking the untapped demand of exchanges.
You can keep up with Solaxy on X and Telegram, or join the presale on the Solaxy website.
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