Solana faces risk of greater fall if it breaks the key support of 172 dollars.
Analyst believes that, in the medium term, Solana maintains bullish structure.
Solana (Sol) reached a peak of $ 208 on August 14, but again, he failed to stay above the 200 dollars and suffered a price correction.
As if this were not enough, There are signs of weakness that could make significant progress difficult in the short term.
In this regard, Parshwa Turakhiya, financial market analyst, Point out that “Solana is going through a critical situation in August.” As he explains, “the rejection in the $ 208 marked an important change.” In addition, he adds that leverage trailers are reducing their exposure and that the strong capital exits of the exchanges reflect the caution of investors.
“The stock market data shows a net exit of approximately 85 million dollars on August 18, coinciding with the fall of the sun from 191 to 181,” he says.
On the other hand, open interest (OI) around 7%was reduced, standing at 11.5 billion dollars, which indicates that the speculative activity has decreased.
The combination of these factors, traders that close positions and withdrawals of funds, is a sign that investors keep the caution against new movements of Solana.
As for the technical analysis of Sol, Turakhiya points out that it will be key that Sol can break the resistance in the range of 187 and 189 dollars, where the exponential mobile socks (EMA) of 20 and 50 days converge, represented in red and orange, respectively, in the following graph:
In that sense, he warns that if Sol fails to recover that area, the risk of a fall increases towards the level found in 172 and 176 dollars (celestial rectangle), a level where significant purchases have previously occurred.
If Sol manages to maintain that support, Turakhiya considers a rebound to $ 190 and even It does not rule out that the trend can consolidate up to $ 200 in the medium term. On the contrary, a break below $ 170 could trigger deeper corrections, reaching 150 dollars.
“In our previous perspectives, we highlight the difficulty of Sun to overcome the area of 200-210 dollars, where repeated rejections suggested a strong offer. The current setback confirms that this area represents a level of strong resistance. Our previous conversations also pointed to 170 as a key support, and that area is again in the spotlight while the market evaluates if Sol can maintain its general bullish trend,”
Now, it is worth asking what are the factors that can boost the price of sun. One of them is that the United States Stock Exchange and Securities Commission (SEC) approves the launch of the Funds to the Cotizados in the Stock Exchange (ETF) of Sun.
As reported by cryptootics, so far the organism directed by Paul Atkins gave the green light to the Future Fund managed by Rex Shares and Osprey Funds, an instrument that allows investors to obtain exposure to the sun’s price and, in addition, generate additional income through staking.
Institutional investment will be key to boosting the price of sun. Companies such as Development Corp (formerly Janover), Classover Holdings, Sol Strategies or UPEXI are accumulating The asset in its treasury as a reserve assets and to obtain additional income through the staking.
If this trend continues, perhaps Sol can consolidate a narrative as a reserve asset, in addition to increasing its visibility among institutional investors.
