SOL News: Solana (SOL) Faces Market Turmoil Amid Broader Crypto Decline

SOL News: Solana (SOL) Faces Market Turmoil Amid Broader Crypto Decline

SOL News – Solana’s price has significantly declined over the past ten days, mirroring the broader market downturn and causing concern among institutional investors, many of whom have chosen to withdraw their funds from the asset.

Institutional Confidence in Solana Wanes

Currently trading at $137, Solana’s price is attempting to recover from a sharp dip, having recently plunged to around $110 due to mounting selling pressure. This bearish sentiment has been particularly evident among institutional investors over the past week.

According to a recent report from CoinShares, institutional investors pulled more than $528 million from crypto assets in the week ending August 3. While the majority of these outflows were from Bitcoin (BTC), Solana also saw significant withdrawals, with $2.8 million exiting the asset.

Interestingly, other altcoins did not experience similar outflows, highlighting the heightened level of institutional engagement with SOL, positioning it alongside leading cryptocurrencies like Bitcoin and Ethereum (ETH).

Although institutional data for the last three days is still pending, the persistent selling pressure is clear. The Relative Strength Index (RSI), which measures the velocity and magnitude of price movements to assess overbought or oversold conditions, is currently below the neutral 50.0 mark. The RSI, ranging from 0 to 100, suggests oversold conditions when below 30 and overbought conditions when above 70.

The ongoing decline in these indicators underscores the continued selling pressure that is significantly impacting SOL’s price. For the altcoin to regain momentum, this pressure must ease.

SOL Price Forecast: Persistent Challenges

Solana’s price has not only erased its recent 44% gains but also invalidated a bullish double-bottom pattern that had pointed to a potential 31% rally, which could have pushed SOL to $245.

Despite these setbacks, Solana remains above a critical support level at $126, currently trading at $137. While a potential rebound could see the price struggle to break through the $156 resistance, renewed institutional interest might propel Solana to $180, potentially negating the bearish outlook.