SOL Sees 5% Decline as Institutions Sell Off at Midnight

The cryptocurrency sector is under renewed strain, with Solana (SOL) slipping below its previously steady trading range of $177, highlighting growing unease regarding global economic conditions.

This decline aligns with rising geopolitical tensions that have unsettled financial markets globally, compelling investors to re-evaluate their risk tolerances related to digital currencies.

However, amid this downturn, Solana’s ecosystem is still showing growth, particularly as R3 shifts its strategy to incorporate Solana’s blockchain, indicating a burgeoning institutional interest in utilizing the platform for the tokenization of tangible assets.

Key Technical Analysis Points

• The price of SOL has retreated from the $177 stability point to establish support at approximately $170.41, marking a 4.5% decrease.
• A notable surge in trading volume to 1.26 million shares was recorded overnight as prices dropped beyond the $172 threshold.
• Support zones have formed between $170.67 and $171.66, which have thus far remained intact.
• The price made an attempt to rebound towards the $174 mark but encountered resistance.
• Within the last hour, SOL’s price fell from $172.93 to $172.00.
• A significant drop was observed at 08:00, with prices briefly dipping to $171.92 before making a recovery.
• Volume peaked at 29,372 units during a single minute, indicating notable selling pressure from institutional investors.
• Some short-term support was identified in the range of $171.80 to $171.85 around 07:30 to 07:31.
• A local peak of $172.35 occurred at 07:36 during the recovery effort.
• Currently, the price is consolidating near the $172 support level.