[Solana Price Rising Trend Ends Due to Massive Withdrawals]
Outflows from large wallet holders and waning market momentum as the third quarter comes to a close are denting Solana’s uptrend. Solana price is unable to rebound significantly and is expected to continue to consolidate. There are two main reasons: First, the trend fades, and the average directional index (ADX) falls below 25.0, indicating that the upward trend has lost momentum and the possibility of a market rebound is reduced. Second, the interest of large wallet holders has weakened and the inflow of funds from institutional investors has decreased.
According to a CoinShares report, SOL saw inflows of just $100,000 in the week ending August 24, the lowest of any asset and below Cardano’s $300,000 inflow. SOL has already experienced $34 million in outflows this month, which could have a negative impact on Solana if the situation persists.
Solana price gained 24% in 20 days to reach $161 and is currently settling above the $156 support, trying to break the $175 barrier to kick off a rebound. However, the above-mentioned factors may hinder the rise, preventing the price from breaking above $175. The consolidation is likely to continue, with some of the losses from July's $20 plunge failing to recover.
If $175 is turned into support and the crypto asset continues its rally, reaching $186 would restore lost gains, negating the bearish view.
