Solana
Solana (SOL) price at risk if this support level breaks
Solana (GROUND) price continues to fall as broader market signals turn bearish, as does investor interest.
Alongside them, a key cohort that had influence on Solana is stepping down.
Solana and Institutions: the complicated duo
Solana’s price is bearing the brunt of the pushback from its investors, as evidenced by open interest (OI) and inflows. First, investors are becoming more and more skeptical.
The change in sentiment reflects the broader uncertainties and volatility within the market, prompting Solana Brackets to adopt a more prudent approach in their investments. In the span of a week, OI decreased by over $500 million, from $2.5 billion to $2 billion.
Solana open interest. Source: Change machine
Additionally, until the end of May, institutional investors had shown a strong preference for Solana (SOL), a sign of confidence in its potential. However, this trend has changed significantly recently.
Currently, institutions are diversifying their investments by allocating funds to Ripple (XRP), Litecoin (LTC) and Chain link (LINK). This redistribution of investments highlights a strategic approach aimed at mitigating risks and capitalizing on the potential of other cryptocurrencies.
For the week ending June 8, the three assets each saw inflows worth approximately $0.7 million. Even if it did not start Solana’s place as the asset with the highest inflows year-to-date, it is being called into question. Ripple (XRP), on the other hand, saw inflows worth almost $1.2 million.
Learn more: How to Buy Solana (SOL) and Everything You Need to Know
SOL Price Prediction: A Difficult Recovery
Solana’s price trading at $144 will likely continue its decline to reach $137 as a support floor. This price has been tested in the past and marks a monthly low for SOL. If skepticism persists among investors, the altcoin could fall to $126.
Learn more: Solana (SOL) Price Prediction 2024/2025/2030
On the other hand, if Solana price rebounds from $137 or above and reclaims $150 as a support floor, it could recover quickly. Exceeding $156 is the ideal target for SOL, and securing it as support would allow a rebound to $170. This would not only help recoup recent losses but also invalidate the bearish thesis.
Disclaimer
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