Solana price could be at risk of more downside in the coming weeks after forming two highly bearish patterns on the daily chart.
Summary
- Solana price has crashed by 38% from its highest point in August.
- Spot SOL ETFs have accumulated over $342 million in inflows.
- Technical indicators suggest the token may crash below $100.
Solana (SOL), the top layer-1 network, was trading at $158, down 38% from its September high.
The ongoing retreat happened even as investors continued buying the recently launched SOL ETFs. Data compiled by SoSoValue shows that the two spot ETFs had $6.78 million in inflows on Monday.
The cumulative inflows have jumped to $342 million, with the Bitwise SOL ETF having $329 million in assets. Grayscale’s GSOL has had cumulative inflows of $12.8 million.
The total assets in these funds stand at $600 million, a substantial amount for funds that were approved two weeks ago. This growth will likely continue as the SEC considers other Solana ETFs by companies like and VanEck, 21Shares, Franklin Templeton, and Fidelity.
Solana’s ecosystem is also doing well, with DEX protocols in its network leading in volume. DeFi Llama data shows that these platforms handled over $139 billion in volume in the last 30 days, higher than BSC’s $102 billion and Ethereum’s $88 billion. DEX protocols like HumidiFi, Meteora, and Raydium are leading its growth.
It is common for a cryptocurrency with solid fundamentals to retreat, especially when the industry is not doing well. Solana’s retreat has coincided with the ongoing performance of other tokens like Ethereum, Avalanche, and XRP.
Solana price technical analysis
The daily timeframe chart shows that SOL has been in a strong downtrend over the past few months. It has already formed a death cross, as the 50-day and 200-day Weighted Moving Averages crossed.
Solana price has moved below the Supertrend indicator, a sign that bears remain in control. It has also formed an inverse cup-and-handle pattern with a depth of about 38.2%.
Measuring the same distance from the cup’s lower side points to more downside, potentially to $96, closer to the year-to-date low. This decline will be confirmed if it plunges below the key support at $126, its lowest level in June this year.
