Last week’s $421 million weekly inflows to Solana’s U.S ETFs lulled some market participants into a false sense of bullish security.
Technical indicators showed steady selling pressure, and the bearish market structure meant a move towards $145-$150 is likely this week.
According to a recent AMBCrypto report, Solana [SOL] whales have continued to accumulate SOL even as the rest of the market backed away in fear. In fact, Solana saw $421 million in weekly inflows to the new U.S. exchange-traded funds (ETFs) last week.
Other assets saw net outflows, with Bitcoin [BTC] leading the pack with $946 million headed outwards. Despite the capital flow to Solana though, the price action seemed to be in bearish control at press time.
The fact that institutions continued to buy SOL, even though it looked “expensive” relative to TVL, did not keep the bears at bay during the most recent price dip. Hence, the question – Will the latest dip turn into a downward spiral, or will we witness a rebound?
After the crash on 10/10, SOL bulls valiantly defended the $170-$180 demand zone (cyan box). They even managed to form higher lows, but this was a red herring.
These higher lows were not accompanied by higher highs. Instead, it was a symmetrical triangle pattern (yellow) following a strong bearish impulse move earlier in October. During this compression pattern, or consolidation phase, the OBV continued to trend south.
This was a clue to swing traders and investors that the selling pressure remained firm. The MFI was also unable to cross above the 50-mark – Another sign that momentum and capital flow favored the bears.
The most recent losses pushed SOL below the swing low at $168.8 made on 10 October. Just a few hours before press time, the $156.65-support level from July had been tested as support.
The $145-$155 area was a key technical zone in late June and early July. It could be respected as a demand zone in the coming days. Lower timeframe traders can use Monday’s high and low at $189 and $163 to form their biases.
In the short term, the $163-$170 area would be resistance, while $150 would be the nearby support to watch out for.
