One of the most talked-about cryptocurrencies on the market right now, Solana (SOL), has abruptly run into strong resistance that has stopped its upward trajectory. Given that this week had the biggest inflow of Solana since 2022, it’s interesting to see that the current negative surge is mirroring the volatility of March 2022.
This was primarily brought about by a drop in purchasing pressure at resistance levels, which led to an increase in exchange reserves.
Solana Increased Inflow by $24 Million
Investment products run by well-known asset managers, including as CoinShares, Grayscale, 21Shares, Bitwise, and ProShares, have seen a spike in inflows for the second week running, totaling $78 million, the largest since July. Funds with an emphasis on Solana and Bitcoin have been leading this inflow.
Solana (SOL) is losing ground; when will the price rebound begin?,Solana (SOL) is losing ground; when will the price rebound begin?
Remarkably, Solana investment products have experienced a notable surge, recording their greatest inflows since March 2022 by amassing an extra $24 million, according to the latest CoinShares data.
Solana is “persistently establishing itself as the preferred altcoin,” according to Head of Research James Butterfill, particularly in view of the recent launch of Ether futures ETF products.
It is noteworthy that Solana funds have had inflows in 28 of the current year, compared to only four weeks of outflows in 2023. Notably, the price of SOL saw a significant decrease in March 2022, falling from $140 to merely $25.
The increase in inflows suggests that, following the altcoin’s peak last week, holders were aggressively moving SOL to exchanges. This action implies a desire to protect their gains, which puts downward pressure on the cryptocurrency.
Six ether futures ETFs made their U.S. debut last week, drawing slightly less than $10 million, indicating a “tepid appetite,” according to James Butterfill. This is little compared to the $1 billion that bitcoin futures ETFs saw in their first week of trading in 2021, although in a different market.
Next Steps For The Price Of SOL?
Solana had a sharp decline from $23.5 and has since been moving through a negative range. Recent market movements have raised fears of a sharp decline in the hours ahead. The price of SOL is currently trading at $22.2, down more than 5% from yesterday’s price.
The price may slightly rise as bulls try to stop the market from falling below $21. If the price rises and breaks out of its negative zone, the SOL price may attempt to rise to $25 and maybe approach $32.
Conversely, a growing negative attitude is indicated by the lowering 20-day EMA around $23 and the falling RSI line towards the oversold area. A decline below $21 support would signal a bull market capitulation and open the door for a bearish consolidation with $17–$18.
Solana (SOL) is losing ground; when will the price rebound begin?,Solana (SOL) is losing ground; when will the price rebound begin?,Solana (SOL) is losing ground; when will the price rebound begin?