Solana holds $185 support as Bitwise CIO calls it a two-way win amid renewed inflows

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Solana holds $185 support

Highlights

- Solana trades near $186 after defending key channel support around $183–$185.

- Bitwise CIO Matt Hougan calls Solana a “two-way win” for tokenization and stablecoin growth.

- Exchange netflows turn positive after weeks of outflows, signaling renewed accumulation.

The daily chart shows Solana consolidating near its lower trendline, which has repeatedly acted as support since March. The $183–$185 area has proven to be a strong accumulation zone, with multiple rebounds from this range through September and October. Current price action suggests another defense attempt, as candle wicks show buying interest emerging on dips.

SOL price dynamics (Source: TradingView)

Short-term momentum, however, remains fragile. The 20-day EMA at $194.59 and 50-day EMA at $197.10 continue to cap recovery attempts, while the 100-day EMA near $187.26 now acts as a pivot. A close above $197 would signal a bullish breakout, opening upside targets at $210 and $240. Failure to hold $183 could drag the token toward $170, where the next major base lies.

The RSI has flattened near 43, showing a neutral stance after weeks of correction. The lack of oversold readings proposes that sellers are losing control, but buyers have yet to reassert dominance. Holding the $185 zone will be critical to maintaining the channel’s bullish integrity.

Flows and sentiment shift

On-chain data signals early signs of accumulation. Coinglass reported $4.34 million in inflows on October 31, ending a two-week streak of outflows that followed the sharp pullback from $250. Historically, such reversals in flow direction have preceded price recoveries, as seen during July and September.

The easing outflow pressure points to investors rotating back into Solana at support levels. Analysts note that the shift in sentiment reflects confidence in Solana’s long-term fundamentals, even as traders remain cautious in the short term.

Institutional outlook and narrative momentum

Bitwise CIO Matt Hougan added a strong macro argument for Solana’s future this week, describing it as a “two-way win” for investors. Hougan said the blockchain stands to benefit from both the rapid expansion of tokenized assets and the growth of the stablecoin market. Solana currently holds a 14% share of the $768 billion tokenization and stablecoin sector, competing closely with Ethereum, BNB Chain, and Tron.

Hougan also cited Western Union’s decision to use Solana for cross-border stablecoin transfers as a major validation of its real-world utility. He noted that if global tokenization scales tenfold in the coming years, Solana’s share could multiply alongside it, creating a dual revenue and network growth engine.

The combination of high throughput, low fees, and developer-driven ecosystem growth continues to draw institutional attention, even as market participants await confirmation that these narratives will translate into sustained price recovery.

Outlook

Solana’s near-term outlook hinges on the $183–$185 range. Defending this base could trigger renewed buying momentum and set up a rebound toward $210–$230. Conversely, a breakdown would expose $168–$170, where the next strong support lies. Despite recent weakness, the broader narrative around Solana remains constructive. The return of inflows, strong institutional endorsements, and it's positioning in the tokenization ecosystem keep the long-term bias positive.

As Bitwise’s Hougan described, Solana’s “two ways to win” — through real-world finance adoption and stablecoin growth, suggest that while short-term consolidation may persist, the underlying trend still points upward.

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