Solana (SOL), which made a mark both as a network and a local token last year and in the first quarter of this year, tried to stay strong amid the massive market crash but was not very successful and fell by 20% in the last 7 days. This situation seems to have also sparked panic among institutional investors, who have been frequently mentioned recently, as this group of investors was seen withdrawing their money from the asset.
Solana Comments
Although Solana’s price rose to $145 and increased by 10% compared to yesterday, it reflected a 20% drop in the last 7 days. It was also seen that the SOL price dropped to $110 due to the prevailing selling pressure in the market the previous day.
It is believed that the attitude of institutional investors over the past week has also influenced this situation. According to data shared by CoinShares, at the end of last week, on August 3, institutional investors withdrew over $528 million from cryptocurrencies. While a large portion of this amount was Bitcoin-related (BTC), a $2.8 million outflow from Solana did not go unnoticed.
Besides Bitcoin and Solana, only Ethereum shared the same fate, and no other outflows were seen in the market outside of this trio. Although there has been no new development regarding institutional data in the last three days, it would not be wrong to say that the selling pressure is increasing day by day. Nevertheless, today’s rise could act as a barrier to this situation and might deter investors from selling, which is only a possibility.
How Much Will Solana Be?
The sharp decline in Solana’s price in recent days has had a real negative impact on the price and caused the double-bottom bull formation to break. According to the formation, SOL had the potential to rise to $245, which meant a potential rally of 31%. However, the altcoin could not host a breakout and is trading at $145 at the time of writing.
On the other hand, despite the declines, it was seen that SOL did not close below the critical support level of $126, which could be an indicator of a recovery. Depending on the mentioned support, the price might perform a new rise targeting the $156 resistance.
On the other hand, if institutional investors pause their sales and start buying again, Solana’s price could exceed $156.
