ambcrypto.com 
Solana [$SOL] extended its bearish outlook on the price charts. The altcoin dropped to a low of $61 before slightly rising.
The altcoin has not touched such low price levels since November 2023, marking a 31-month low. At press time, $SOL traded at $62, down 4.6% on the daily charts.
Solana continued to decline as investors across the market pulled capital from the asset. At the same time, speculators chose to walk away and await more suitable market conditions before reentering.
Solana institutional investors dump $SOL
Institutional investors grew increasingly pessimistic and began closing their positions. Increased losses largely drove this bearishness.
In fact, $SOL Spot ETFs have turned negative after holding positive through the past month. Spot net inflows recorded a negative value for two consecutive days.
Source: Sosovalue
This suggests that even institutional investors are now aggressively dumping. Usually, increased selling pressure weakens the market, causing further losses.
For instance, in March, when $SOL ETFs began selling, the altcoin declined from $91 to $81. This reflects the influence that major market players have on the market.
Therefore, if the previous market incidents are anything to go by, Solana is likely to see more losses if institutions continue to sell.
Losses send the market into panic
The shift in institutional investor sentiment seems largely driven by rising losses in Solana’s treasury.
Take Forward Industries, for example; the treasury company is currently down over $1.3 billion on its $SOL bet. Forward Industries is not an isolated case; other firms have also recorded significant losses.
Source: Coingecko
Over the past 24 hours, Solana DATs are down 29%, with the total value of $SOL held falling to $1.1 billion. With the Solana bet turning sour for DATs, others have become increasingly cautious.
Can $SOL hold $60?
Solana’s downtrend momentum has continued to strengthen amid intense bearish pressure. In fact, the altcoin’s Relative Strength Index (RSI) fell deeper into oversold territory, touching a low of 15.
This suggests that bears are leading the market and that buyers have been eliminated. Such market conditions signal the likelihood of a continuation of the trend.
Source: TradingView
With the recent market dip, Solana is testing $60 as a critical support level. Amid this attempt, the market downside strength appears increasingly elevated, raising the likelihood of a breach.
Therefore, if current conditions persist, we could see $SOL drop below $60, with $53 as the next support level.
Final Summary
- Solana’s decline extended, falling 4% to a 31-month low of $61.
- $SOL ETFs began selling after one month of sustained accumulation, as rising losses sent panic among institutional investors.
