- Solana has its price wavering beyond the 50% retracement area of $216, suggesting further drops.
- A downswing might knock the altcoin low, sweeping the range low near $186.
- A daily close beyond $246 will cancel the bearish thesis.
Solana sees its price consolidating near the trading range’s mid-level, showing that SOL might head lower by following the general price trend. Such a move can reset the selling momentum and offer a buying opportunity for buyers’ comeback.
Solana Inflows Depreciate
Recent CoinShares data shows Solana institutional participants have reduced over the past two weeks. The altcoin’s total inflow over the previous month stands at $43 million. On the other side, Bitcoin had its inflow decreasing to $8.5 million from $9.8 million. The 13.2% drop shows that institutional investors are into alternatives.
However, BTC appears to attract more players as its total inflows surged to $114.4 million from $97.5 million. The 17.3% surge indicates that interested individuals might want to purchase the dip. Meanwhile, Ethereum still dominates today’s modern world. The leading alt had its inflows over the past week toppling $12.6 million. Still, ETH-Killer SOL appears to siphon most of the interest, with inflow standing at $8.5 million.
Though monthly inflows are still bullish, the near-term picture remains bearish, somewhat mimicking technicals.
Solana Price Targets Lower Support Levels
Solana’s price tried to rise on 18 November to surpass the $246 swing high of 15 November but failed. Such a move translated to an 8% plunge to SOL’s current price of $216. Breaking the 50% retracement at $216 can catalyze a downfall and knock SOL down towards the range low of $186. This correction can encounter a momentary pause near the psychological level at $200. However, market players can expect Solana to fall under the $186 range low to gather sell-side liquidity.
In another scenario, Solana can retest 70.5% FIB retracement at $233 before heading lower to breach the support barrier at $216. Meanwhile, a 15% crash appears possible from Solana’s current position. For that reason, investors need to consider the support at $216, a break or make level.
Despite this bearish case, a higher high past $233 will show weakness by sellers. A daily close past the $246 range high will cancel the bearish narrative. Such moves can witness Solana continuing its upsurges, retesting its ATH of $260.