- Solana (SOL) experiences a price decline amid broader market downturn.
- Institutional investors withdraw $2.8 million from SOL in the week ending August 3.
- Technical indicators suggest ongoing selling pressure, but critical support remains intact.
Solana (SOL) has recently encountered substantial headwinds, mirroring the broader cryptocurrency market’s downward trend. The digital asset’s value has seen a notable decrease over the past ten days, prompting a reassessment of its market position by various stakeholders.
Solana Institutional Investors Respond to Market Shifts
According to data from CoinShares, the week concluding on August 3 witnessed a significant outflow of institutional capital from crypto assets, totaling approximately $528 million.
While Bitcoin (BTC) accounted for the majority of these withdrawals, Solana also experienced a noticeable exodus of funds, with $2.8 million being pulled out by institutional investors.
Interestingly, other alternative cryptocurrencies did not record similar outflows during this period. This divergence highlights Solana’s unique position in the market, placing it alongside major players like Bitcoin and Ethereum in terms of institutional interest and market dynamics.
The Relative Strength Index (RSI), a key technical indicator, currently sits below the neutral 50.0 mark for Solana. This positioning suggests that selling pressure continues to exert influence on SOL’s price movements.
The RSI, which ranges from 0 to 100, is often used to identify potential overbought or oversold conditions in asset prices.
Despite the recent downturn, Solana’s price has managed to maintain its position above a critical support level of $126. This resilience in the face of significant selling pressure may provide a foundation for potential price stabilization or recovery in the near term.
The recent market movements have invalidated a previously identified bullish double-bottom pattern in Solana’s price chart. This pattern had suggested the possibility of a 31% rally, potentially driving SOL’s price to $245. However, current market conditions have rendered this projection obsolete.
