Solana (SOL) dropped dramatically to approximately 177.15, under 180, though new ETFs tied to the token attracted 199 M last week. The inflows propelled the total ETF assets beyond 500 M since its inception, but SOL continues to exhibit short-run price underperformance.
Crypto.news reports that SOL fell 5.25 per cent in 24 hours and more than 7.8 per cent in the past week, as it became one of the largest decliners in a wider market downturn.
The fall is despite the continued high interest in issuing Solana ETFs by providers such as Bitwise and Grayscale, which indicates long-term investor confidence.
That optimism is now concealed by continued selling as traders reduce risk against macroeconomic volatility.
The crypto market cap dropped by more than 3 % in 24 hours, erasing more than 114B and losing overall market value to around 3.61T, covering Solana and other cryptocurrencies.
Support Level Tested as Price Tumbles
Since the middle of September, Solana has been on a downward trend and has not been able to hit new highs as well as establish new lows.
The token is currently at a critical support zone around the level of $175, which has experienced very strong buying interest since early August.
Should buyers protect this zone once more, SOL will stabilize and attempt to reverse its downward trend by regaining the level of $200.
Victory might trigger new short-term bullish action. On the downside, the inability to maintain the $175 support can drive the losses to as much as 157, and the losses may be further reduced to 142, which will be the lowest point experienced in the market-wide crash on October 10.
This bearish view is true until an obvious reversal pattern is in place, but the possibility of sustained ETF inflows proves to absorb a downside risk should sentiment turn.
Market Dynamics Behind Price and ETF Disconnect
The ETF paradox of increasing inflows and a declining price indicates broader market forces.
Analysts observe that Solana dropped at a time when the crypto market broadly was in a state of correction, and that Solana was caught in a sell-the-news effect where prices decrease following a significant product release or regulatory nod that was anticipated.
Indicatively, the transfer of a significant number of SOL tokens by Jump Crypto might have also exerted a burden on sentiment. The Bitwise Solana Staking ETF and the Solana Trust IPO by Grayscale have gained significant investment.
Bitwise is ahead with approximately $400M in assets, due to its low cost ratio and staking rewards that attract investors.
Regardless of these advantages, the price of SOL continues to struggle in the prevailing risk-off market, trailing behind other significant assets such as Bitcoin and Ethereum, which have shown a year-to-year gain.
The post Solana ETF News: Solana Price Sinks Below $180 Despite $199m Weekly ETF Inflows appeared first on BitcoinLinux .
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Author: NixCoin