Solana Under Pressure: Institutional Outflows Despite ETF Approval in Brazil
Traders are currently holding their breath as they watch the price of $SOL, which is still struggling to recover recent losses. Despite positive news from Brazil, where a second spot SOL ETF has been approved, the price remains around $145. What’s going on with this popular altcoin?
Institutional Investors Slowly Withdrawing
Contrary to expectations, we are witnessing a notable withdrawal of institutional investors from Solana. According to a recent report by CoinShares, $SOL experienced an outflow of as much as $38.9 million in the week ending August 17. This has led to the total inflow of Solana this year now being lower than that of Litecoin ($LTC).
This is particularly surprising given the recent approval of a second spot SOL ETF in Brazil. Normally, such an event would be seen as a bullish signal for the market.
Technical Analysis Shows Weakness
Technical indicators for Solana are also not looking promising. The Relative Strength Index (RSI) has fallen below the neutral line, suggesting that the recent buying pressure was not sustainable. As long as the RSI remains in bearish territory, a quick price recovery seems unlikely.
Price Outlook
At the time of writing, Solana is trading around $142, just above the crucial support level of $137. The brief rebound from $130 to $162 earlier this month appears to have largely faded. Analysts expect that SOL will likely consolidate below $156, as it has done before.
If the $137 support level gives way, Solana could fall back to the key support at $126. A rebound from this point would maintain the macro consolidation range between $186 and $126.
Is There Hope for the Bulls?
It’s not all doom and gloom for Solana enthusiasts. If the altcoin gradually recovers and manages to reclaim $156 as a support level, it could counter the bearish scenario. In that case, the $SOL price might rise to $169. Although this would not fully recover from the 30% crash in July, it would be a positive signal for the market. Show Less
