2024-3-21 22:30 |
Solana (SOL) price continued its rise even as the rest of the market slowed down until the rally was abruptly stopped this week.
The corrections that arose in the last two days seemingly negatively impacted the altcoin, but the reason behind the same is far more concerning.
Is Solana Losing Institutions’ Favor?Solana’s price fell over the last two days, wiping out close to 16% of the gains noted by the altcoin recently. Interestingly, this correction arrived at the same time as the release of CoinShares’ weekly report.
Per the report, the interest of institutional investors could be seen at its peak in the last year. However, most of the inflows were concentrated towards Bitcoin, which noted $2.89 billion flowing in for the week ending March 15.
What stood apart, however, were the outflows. Ethereum and Solana emerged as the two worst-performing assets in the said week. The former noted outflows worth $13.9 million, while SOL observed $2.7 million leaving the asset. Nevertheless, this did not impact the month-to-date flows of Solana, which is still the highest among all other altcoins, including Ethereum.
Solana Institutional Flows. Source: CoinSharesWith $23.8 million flowing in since the beginning of March, Solana has outperformed Ethereum, which registered outflows amounting to $13 million. This shows that despite the bearish week, SOL still has the institution in favor, making the recent correction a false dip.
Read More: Solana (SOL) Price Prediction 2024/2025/2030
Furthermore, the decline in price did not affect the investors’ optimism either. Solana holders are still exhibiting bullish sentiment, the highest noted since December 2023. This signals that SOL investors are still hopeful of further bullishness.
Solana Weighted Sentiment. Source: Santiment SOL Price Prediction: This Is Where the Altcoin Will End UpSolana price is already testing the $168 level as support and not falling through it. This level also marks the confluence of the 50-day Exponential Moving Average (EMA), making it a critical support floor.
SOL/USDT 1-day chart. Source: TradingViewIf bullishness persists, SOL could climb back to reclaim the support of $183, which would recover nearly half of the corrections registered in the past 48 hours.
Read More: 13 Best Solana (SOL) Wallets To Consider In March 2024
However, if the critical support floor is lost, a drawdown to $150 is possible. Losing this would invalidate the bullish thesis.
The post Solana (SOL) Price Dips as Institutional Interest Declines – Can it Bounce Back? appeared first on BeInCrypto.
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