Solana price has crashed into a bear market after falling by over 35% from its highest point in September, and an impending death cross points to more downside despite the soaring ETF inflows.
Summary
- Solana price has plunged by over 35% from its September high.
- It is about to form a death cross pattern on the daily chart.
- The coin has also formed an inverse cup-and-handle pattern.
Solana (SOL) token was trading at $160, a range it has remained at in the past few days. It is hovering at its lowest level since August this year.
SoSoValue data shows that demand for Solana among American investors is rising. These funds had $12.6 million in inflows on Friday, bringing the cumulative total to $337 million.
They now hold $575 million in assets, with Bitwise’s BSOL having $478 million in assets. Grayscale’s GSOL has accumulated $97 million in assets. Their combined assets are equivalent to 0.64% of its market cap. These inflows may continue after Grayscale waived its fees.
Solana price has slipped despite the rising inflows because of the broader weakness in the crypto industry. Bitcoin (BTC) and most altcoins have remained on edge in the past few weeks as concerns about the next actions by the Federal Reserve.
Another possible reason is that Solana does not belong in the key themes that are doing well. For example, it is not considered an artificial intelligence or a privacy token.
Top privacy tokens like Zcash, Dash, and Monero, and AI tokens like Near, Filecoin, and FET have led the gains in the crypto market.
Still, Solana has some solid fundamentals that may help it rebound later this year. Its ETF inflows are rising, and its Alpenglow upgrade is on the way. Alpenglow will introduce sub-second finally, a surge in throughput, validator cost reductions, and a new consensus mechanism.
Solana price technicals points to more weakness
SOL price chart | Source: crypto.newsTechnicals suggest that the SOL price will remain under pressure before its eventual rebound. It is about to form a death cross pattern, which happens when the 50-day and 200-day moving averages are about to cross each other. A death cross is one of the riskiest patterns in technical analysis.
The coin is also forming the handle section of the inverse cup-and-handle pattern. Also, it has formed a bearish pennant and remains below the Supertrend indicator.
Therefore, the most likely scenario is where the Solana token continues falling as traders target the key support at $126, the lowest point in June. This price is about 20% below the current level.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Source: https://crypto.news/solana-price-patterns-point-to-a-20-crash-as-sol-etf-inflows-soar/
