Solana (SOL) has experienced notable volatility in the past few days, trading around $133.75, with institutional outflows impacting its market performance. Over the past month, Solana has seen $34.3 million in institutional outflows, marking it as one of the least favored crypto assets. This has led to price declines below key support levels at $150 and $142, with SOL currently testing the $128 support level. It remains below its 100-hour moving average, struggling to regain momentum(CryptoNews)(CryptoNews).
Technical Analysis
Solana’s price is expected to remain within the consolidation zone of $126 to $160, though a breakout toward $169 is possible if broader market sentiment improves. However, the key resistance level to watch is $138, and unless Solana can surpass this level, further declines could occur, with potential support as low as $122(CryptoNews)(MarketBeat).
Market Sentiment and Future Outlook
The broader crypto market, including Solana, is experiencing caution as September unfolds. Despite SOL’s robust blockchain technology and potential long-term use cases, its short-term outlook remains bearish-neutral due to lower liquidity compared to assets like Bitcoin and Ethereum. Analysts suggest that unless a significant change in sentiment, such as the launch of Solana ETFs, occurs, the price is likely to remain volatile(TalkMarkets)(CryptoNews).
For now, traders should be cautious and monitor key support and resistance levels, with potential opportunities arising if Solana can break out of its consolidation phase.
