Solana (SOL), the fifth-largest cryptocurrency, is experiencing bearish trends amidst a broader market downturn.
Solana Technical Analysis and Support Levels
Solana (SOL) has failed to maintain its crucial support level, falling below the $227 mark. Experts note that after reaching its all-time high, SOL entered a consolidation phase and formed a bearish 'head-and-shoulders' pattern. If SOL closes the day below the $226 level, further decline to the $200 mark is possible. However, SOL is trading above the 200 Exponential Moving Average (EMA), indicating a potential uptrend. The Relative Strength Index (RSI) also suggests potential upside movement.
Outflow of $159M SOL
Despite the bearish outlook, there's significant interest from whales and institutional investors. According to Coinglass data, over the past four days, exchanges have witnessed an outflow of $159 million worth of SOL. In the cryptocurrency context, such outflows are considered bullish as investors move tokens from exchanges to their wallets, signaling potential price increases.
Current Price Momentum
Currently, SOL is trading near $222, with a 6.55% decline in the past 24 hours. However, trading volume surged by 101% during this period, indicating increased activity from traders and investors.
Despite current bearish trends, institutional interest in Solana remains high, possibly indicating future growth prospects.
