- Solana faces resistance near $252, signaling potential short-term pullback.
- Institutional backing remains strong despite Solana’s recent price correction.
- Technical indicators suggest Solana may retest support levels around $200.
Solana has recently encountered significant resistance near the $252 mark, leading to a notable price decline. Over the past week, the cryptocurrency fell by more than 10%, reaching a low around $206 on Wednesday before stabilizing in the $210–$212 range. This pullback comes amidst a broader market correction following the U.S. Federal Reserve’s recent 25 basis point rate cut on September 17, which triggered a $1.7 billion in liquidations across the crypto space. With investor sentiment cooling, the Fear & Greed Index has remained in the cautious zone, fluctuating between the high 30s and low 40s.
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Solana’s Technical Outlook Shows Potential for Further Decline
According to recent market analysis, Solana’s price chart reveals several signs of a bearish outlook in the near term. The price has been testing major resistance levels around $252 but has failed to break through. This rejection aligns with the formation of a risk-hinge wedge on the daily chart, hinting at a possible fakeout in the recent price surge. Additionally, the daily MACD has crossed below the signal line, signaling weakening momentum. Solana’s RSI, having recently retreated from overbought territory, may now trend toward oversold levels, further indicating bearish sentiment.
Source: Tradingview
While the daily chart paints a cautious picture, the weekly timeframe reveals a different narrative. Solana has been forming a macro ascending triangle, which suggests that, despite the recent correction, the coin could see a strong breakout before the year’s end. Historical data from Q4 2024 indicates that Solana’s price could face a similar correction before eventually reclaiming upward momentum. If this pattern plays out, the altcoin may revisit the $200 mark to test its support levels before attempting another rally.
Institutional Interest in Solana Remains Strong
Despite short-term technical challenges, institutional backing for Solana remains robust. Several publicly traded companies have continued to accumulate significant amounts of SOL coins. As of the latest data, 9 companies have collectively acquired over 13 million Solana coins, valued at around $2.83 billion. Among these, Forward Industries holds the largest stake, with over 6.8 million SOL coins.
Additionally, Bera Holding, recently rebranded as Solmate, has announced plans to launch a Solana treasury company, with initial capital of $300 million. The initiative has attracted investments from major players like ARK Invest and Pulsar Group, further signaling institutional confidence in Solana’s long-term potential. While the price faces pressure in the short term, the continued support from institutional investors signals a belief in Solana’s future growth.
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