Solana (SOL) is currently facing a major sell wall at the $83 price level, as analysts seek to understand whether the cryptocurrency can break through resistance and extend its recent price recovery.
According to the data available in the market, Solana is currently trading at $83.00 as it marks a decline of 1.47% over the past 24 hours. The cryptocurrency has also seen a daily trading volume of $3.38 billion, with a market capitalization of $47.37 billion, representing approximately 2.06% market dominance globally.
Solana Eyes $89 If Sell Wall Breaks
Despite the fact that Solana has declined slightly over the past 24 hours, the asset is testing the sell wall at the $83 price level. According to a recent post by crypto analyst CW, Solana is now attempting to move through a large sell wall positioned near current price levels.
The analyst went on to explain that if SOL can rise above the sell orders, the path to higher prices may become clearer. According to the chart provided by the analyst, the only significant sell orders for the asset lie at the $89, which could allow the asset to move upward quickly if buying pressure increases.
Also Read | Solana (SOL) Could Surge to $94 if Key Trendline Support Holds Strong
Solana ETFs Attract $1.5 Billion Despite Price Decline
Another interesting development in the Solana ecosystem is the increased interest in SOL exchange-traded funds. As analyst Eric Balchunas highlighted that SOL has declined by 57% since the spot ETFs for the asset were launched in July. Despite the asset’s substantial decline in value, the ETFs have attracted substantial capital from investors.
According to Balchunas, the Solana ETFs have attracted a significant $1.5 billion in inflows. Moreover, the funds have remained in the ETFs as the prices of the assets have declined. This is a significant indicator of the long-term prospects of the asset.
A crucial point to note is the source of the funds. Almost 50% of the assets in the ETFs have come from institutional investors who have filed 13F reports, showing that a large portion of the capital is coming from professional investment firms rather than short-term market participants.
The presence of institutional money is often viewed as a positive signal because it suggests strong confidence in the project’s future. If SOL rises above the current resistance zone, the institutional funds will likely play a crucial part in the next price movement of the asset.
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