Solana (SOL) Price Correction: Is It Losing Institutional Support?
The price of Solana (SOL) has been on a steady rise, outperforming the rest of the market. However, the recent correction in the crypto market has affected SOL as well. But there seems to be a deeper concern behind this correction – the loss of institutional support.
Altcoin Correction and CoinShares Report
Solana’s price experienced a decline over the past two days, erasing about 16% of its recent gains. Interestingly, this correction coincided with the release of CoinShares’ weekly report, which highlighted the influx and outflow of institutional investments in cryptocurrencies.
The report revealed that institutional investors showed significant interest in cryptocurrencies over the past year, with most inflows directed towards Bitcoin. In fact, Bitcoin received $2.89 billion in investments for the week ending March 15. However, Ethereum and Solana were the two worst-performing assets during that same week, with outflows of $13.9 million and $2.7 million, respectively.
Solana Still Leads Altcoins in Monthly Flows
Despite the outflows observed in the CoinShares report, Solana remains ahead of other altcoins in terms of monthly flows. Since the beginning of March, Solana has attracted $23.8 million in investments, surpassing Ethereum’s outflows of $13 million. This indicates that institutions still favor SOL despite the recent correction being perceived as a false dip.
Bullish Sentiment Among Solana Holders
Furthermore, even though Solana’s price declined, sentiment among SOL holders remains bullish. In fact, sentiment levels are at their highest since December 2023. This suggests that SOL investors are optimistic about the future and anticipate further bullishness.
SOL Price Prediction: Where Will the Altcoin Go Next?
Currently, Solana’s price is testing the $168 level as support and has not fallen below it. This level also coincides with the 50-day Exponential Moving Average (EMA), making it a critical support floor for SOL.
If bullishness persists, SOL could potentially climb back up and reclaim the $183 support level, recovering almost half of the recent corrections. However, if the critical support floor is lost, there is a possibility of a drawdown to $150, which would invalidate the bullish thesis for Solana.
Hot Take: Solana’s Institutional Support and Price Correction
The recent price correction in Solana can be attributed to a potential loss of institutional support. While other altcoins experienced outflows, Solana managed to attract significant investments in March. This indicates that institutions still favor SOL despite the recent dip. Furthermore, sentiment among SOL holders remains bullish, suggesting optimism for future price movements.
As with any investment, it is important to consider various factors and do thorough research before making any decisions. Keep an eye on Solana’s price movements and monitor institutional interest to gauge its future performance.
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