Solana Price Dips After Institutional Inflows Drop Sharply
Solana (SOL) experienced a slight dip on Monday, trading around $120 after a four-day streak of gains. Institutional support for SOL weakened significantly last week, with inflows dropping to $2.43 million, a sharp decline from the previous week's $188.22 million. Despite this, the technical outlook for SOL remains cautiously bullish, with a triangle pattern forming on the four-hour chart.
The reduction in institutional inflows into SOL-focused Exchange-Traded Funds (ETFs) marks the 14th consecutive positive week, though demand has notably cooled. Nevertheless, the Solana network continues to show robust growth. Data from SolanaFloor indicates that trading volume on Solana's decentralized exchanges (DEXs) surpassed the combined volume of Ethereum's mainnet, its Layer-2 protocols, and Hyperliquid. Additionally, Real-World Assets (RWAs) trading on Solana exceeded $4.4 billion in volume, suggesting a potential bridge between traditional equities and the crypto ecosystem.
From a technical standpoint, SOL maintains a bullish bias, supported by key moving averages on the four-hour chart. The price hovers above the 50-period, 100-period, and 200-period Exponential Moving Averages (EMAs), reinforcing upward momentum. A resistance trendline near $123 and September's high of $124.95 form a critical barrier, with a potential breakout targeting the 127.2% Fibonacci extension level at $132.87. On the downside, immediate support is seen at the 50-period EMA near $119.25, with deeper support at the 100-period EMA around $116.43.