The crypto market, once brimming with optimism, has entered a harsh phase, with Solana (SOL) struggling amidst the downturn. At press time, Solana was down over 20% since the start of February, on the back of the broader market’s correction. After breaching its macro head and shoulders pattern on the daily, weekly, and monthly time frames, the price dropped below key support levels, including $70, in early February. Losing the $79-$81 support zone, Solana fell to around $69 soon after.
If this level fails to hold, the next demand zone will be between $49 and $53. Now, while the broader market crash contributed to the drop, traders and investors are asking a very pertinent question – Even after dropping below $100, is the storm about to get much worse? Well, there could be further downside ahead. Solana’s bleeding didn’t stop at its price levels alone. It also faced heavy ETF outflows, totaling a staggering -67,632 $SOL ($5.68M) over the past week.
In fact, 06 February saw over $1M worth of Solana tokens exit, marking the seventh instance of such outflows. This episode of sustained retreat from Solana-focused ETFs points to a broader loss of confidence. The market has been sending clear signals and investors are moving away from Solana. Hence, it is possible that the trend will not reverse itself anytime soon.
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