Solana Price Edges Lower as Institutional Demand Rebounds

Solana (SOL) has been trading steadily at around $94 on Monday after experiencing a significant rebound last week, reaching a two-month high. This recent price action may be indicative of renewed institutional buying, as SOL-focused Exchange Traded Funds (ETFs) saw four consecutive days of inflows totaling $28.34 million last week.

Validator voting has begun on multiple proposals, including doubling the disinflation rate to 30%. The voting process will end on Thursday and covers three proposals: SGP 1, which addresses the ratification of the Solana Constitution; SGP 2, proposing a reduction in inflation by increasing the disinflation rate; and SGP 3, introducing a fixed base inclusion fee and a resource fee with a requested transaction cost that will be burned.

Analysts point out that these proposals aim to restructure on-chain decision-making and alleviate pressure on available supply. The technical outlook suggests that SOL price remains capped below the $100 psychological level and the May 11 high of $98.41. A sustained recovery would require a decisive close above this mark, potentially opening up the path towards the 127.2% Fibonacci extension level at $112.52.