Solana price is showing early signs of recovery after recent declines, supported by steady inflows into SOL ETFs.
Summary
- SOL is showing signs of upward momentum after a recent decline to $150, increasing by 1.18% on the daily chart.
- The rebound comes amid sustained inflows into SOL-tracking exchange-traded funds (ETFs).
- The US government shutdown, which has lasted for 37 days, is adding uncertainty to the crypto market, with the Fear and Greed Index dropping to 24.
- Immediate support is at $159, with further support around $150. Resistance is at $175, and reclaiming this level could turn sentiment bullish.
Solana price is currently gathering upward momentum for a potential rebound past the $160 level after a recent decline to $150 following a huge liquidation in the crypto market. Crypto.news data shows the asset has increased by 1.18% on the daily chart, signaling a shift towards positive momentum.
This rebound comes as exchange-traded funds tracking Solana (SOL) continue to see inflows, with recent data from SoSovalue showing significant activity. Over the past seven days, SOL ETFs have recorded substantial inflows, including a peak of $70.05 million on November 3.
However, there has been a sharp decline since then. On Nov 4, the inflows dropped to $14.83 million, and by Nov 5, the inflows further dipped to $9.70 million. The contributions for the latest inflow came from Bitwise BSOL and Grayscale’s GSOL, with $7.46 million and $2.24 million, respectively.
The decline is likely fueled by broader negative sentiment across the crypto market, as well as ongoing macroeconomic challenges, such as the U.S. government shutdown.
The shutdown, now in its 37th day, is the longest in U.S. history and has caused significant uncertainty, impacting liquidity across both traditional and crypto markets. This has been reflected in the Fear and Greed Index, which recently dropped to 24, signaling heightened caution among investors.
Solana price still under bearish control amid SOL ETF inflows
Despite the minor price uptick, the Solana price trades below the 9-day Simple Moving Average (SMA) of $175.85, which may indicate a bearish sentiment in the short term. Technical indicators show the cryptocurrency is under bearish control.
The RSI sits at 33.58 in oversold territory, indicating that the market may be under pressure, but it could also signal a potential reversal or a buying opportunity if the price stabilizes and reverses its course.
Immediate support for Solana price lies around $159, as this level has held well despite recent fluctuations. If SOL continues to weaken, the next potential support level could be $150, where buyers might step in to prevent further declines.
On the upside, the resistance is seen at $175, which aligns with the recent SMA and serves as a key level for any potential recovery. Should SOL manage to reclaim $175, it could signal a shift towards a more neutral to bullish trend, potentially testing $180 as the next significant resistance level.
Credit: Source link
