Solana (SOL) Continues Sideways Move As Outflows Record $39 Million
August 20 2024 - 3:00AM
NEWSBTC
Solana (SOL) has recovered 30% of its price since the Black Monday
crash, hovering between the $155-$140 range. Recent reports
revealed the Solana-based investment products were among the
largest losers last week after registering over $30 million in
outflows. The token continued its sideways trajectory despite the
negative net flows and memecoin’s trading activity decline over the
week. As a result, SOL’s recent performance was praised by some
crypto analysts who deem the cryptocurrency a safe bet. Related
Reading: MATIC Price (Polygon) Sets Sights Higher: Can It Gain
Bullish Momentum? Solana ETPs See Record Outflows CoinShares’
recent report revealed that last week’s Exchange-Traded Products
(ETPs) net flows registered a positive but “low” $30 million. The
data showed that crypto-based investment products saw minor inflows
in the past 7 days, with mixed flows among the providers. Per the
report, the established ETP issuers continued to lose market share
to providers of the newer investment products. The crypto funds’
weekly trading volume also fell to $7.6 billion, dropping nearly
50% from the $19 billion registered the week prior. Throughout the
week, Bitcoin (BTC) saw the largest inflows among the crypto
assets, with a $42 million positive net flow. Short-Bitcoin ETFs
registered $1 million in outflows on its second consecutive
negative week. Ethereum-based products only registered 10% of the
flagship cryptocurrency’s inflows, recording $4.2 million since
August 12. The positive $104 million net flows from new providers
were overshadowed by Grayscale Ethereum Trust (ETHE)’s $118 million
in outflows. Nonetheless, Solana investment products had the
largest outflow by cryptocurrency after Solana ETPs saw $39 million
in negative week flows. 21Shares Solana ETP’s -$37 million ranked
third as the largest outflow by investment product last week, only
behind ETHE and GBTC. SOL Continue Sideways Trajectory CoinShare’s
report highlighted that Solana ETPs’ negative performance occurred
alongside the “sharp decline in trading volume of memecoins, on
which it heavily relies.” Data from CoinGecko revealed that
Solana-based memecoins saw a 3.7% decline in the last 24 hours,
registering a $3.59 billion market cap. Its market activity also
displayed a similar 3% decline since Sunday, falling to a daily
trading volume of $1.1 billion. Despite this, the Solana ecosystem
has moved sideways over the weekend, hovering between the $243
billion to $245 billion market cap since August 15. SOL’s price
also moved between $140 and $155 over the weekend, a range it has
maintained since August 12. Crypto analyst Altcoin Sherpa suggested
that the token will see “more chop and consolidation” in the coming
weeks. However, he asserted that the $125-$150 price range is a
“great place to accumulate SOL.” The analyst also considers the
token “is still 1 you can comfortably hold for a while.” Related
Reading: Bitcoin Price Trims Gains: Is The Recovery Losing Steam?
Similarly, Crypto Jelle noted SOL’s recent performance, stating
that it is “still in the same sideways range, while the rest of the
market made lower lows.” To the analyst, SOL will take off hard “as
soon as Bitcoin finds a bid,” and a new all-time high (ATH) is
“very much on the menu.” As of this writing, SOL is trading at
$144, a 1.4% drop in the last 24 hours. Featured Image from
Unsplash.com, Chart from TradingView.com
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