Solana’s (SOL) price, once a favorite among institutional investors, is experiencing a downturn as large wallet holders begin withdrawing their funds. The outflow of institutional investments is impacting the altcoin's upward momentum.
With Q3 approaching its end, Solana's Average Directional Index (ADX) falling below 25.0 indicates a loss of trend strength. Without a clear directional bias, the market’s potential for recovery is limited.
Institutional interest in Solana has waned, with only $100,000 in inflows for the week ending August 24, according to CoinShares. This is significantly lower compared to other assets like Cardano, which saw $300,000 in inflows.
Solana's price has risen by 24% over 20 days, reaching $161, but barriers remain. The altcoin needs to breach $175 to initiate recovery, but consolidation between $175 and $126 may persist if the bearish sentiment continues.
A flip of $175 into support could change the outlook, potentially invalidating the bearish thesis and recovering lost gains if SOL reaches $186.
