Solana witnessed a large outflow of funds as the price fell by 19% in ten days.

Solana has faced significant price corrections recently, wiping out the gains made in mid-March. Currently, this altcoin is trading at 116 USD, reflecting a 19% fall over the past ten days.

As prices continue to face difficulties, many investors are losing patience, pushing them to sell their assets and leave the market.

The damage of Solana increases

The Realized P/L Indicator (RPL) shows that Solana has underperformed for most of February and March. Although there were brief moments of profit for short-term holders (STHs), the overall trend remains a fall.

These losses have contributed to increasing disappointment among investors, leading many to consider selling their positions. Selling pressure is preventing the market from recovering as more and more investors choose to cut their losses.

As a result, investor sentiment has weakened, with many unwilling to hold their positions as prices continue to fall. The actual Profit/Loss data shows that, in addition to selling pressure from STHs, the broader market is also showing signs of caution.

The Chaikin Money Flow indicator (CMF) also shows a concerning trend for Solana. Currently, at a monthly low, the CMF reflects that outflows are exceeding inflows, indicating that investors are withdrawing money from Solana. This lack of buying pressure is detrimental to the recovery prospects of the altcoin, as the outflows signal a fall in confidence in the asset.

With CMF in the negative zone, the ability of Solana to recover seems limited, as overall market sentiment remains bleak. The lack of investor confidence further worsens the downtrend.

The price of SOL may continue to fall

At the time of writing, the price of Solana is at 116 USD and is struggling to recover from recent losses. Despite a slight increase in the last 24 hours, the recovery of the altcoin remains uncertain. With investor confidence low, the price may continue to face difficulties in the short term.

The factors mentioned suggest that Solana may fall further to 109 USD, extending investors' losses. If the downtrend continues, SOL could test this support level before any potential signs of recovery appear. This price action will make investors anxious and delay any sustainable rally.

However, if Solana can reclaim the level of 118 USD as a support floor, it could trigger a reversal. Surpassing this level would push the altcoin up to 123 USD, and turning it into support would significantly strengthen the bullish argument. In this scenario, Solana could break through resistance levels and rise to 135 USD.

All information on our website is published in good faith and is intended for general informational purposes only. Any actions the reader takes based on the information found on our website should be re-evaluated, and they assume full risk from their own decisions.