What Should Traders Anticipate from Solana (SOL) in September 2024
Solana’s (SOL) performance has been quite discouraging lately, as volatility remains a significant obstacle to generating profits. As the crypto market enters September, BeInCrypto’s analysis suggests that SOL may face an even more bearish month.
Institutional investors, who usually have a strong influence on Solana’s price, have recently taken a negative stance. Throughout August, these investors consistently withdrew their investments, resulting in $34.3 million in outflows for SOL. Consequently, it became the least favored crypto asset during that period. Unfortunately, these outflows are expected to continue into September.
Griffin Ardern, Head at BloFin Research & Options, supports this viewpoint, implying that SOL might underperform and potentially fare worse than Ethereum. While SOL may exhibit more volatility than BTC and ETH due to weaker liquidity, it does have more attractive narratives and applications for investors, such as meme coins. Therefore, despite the current bearish sentiment, SOL’s price performance could still potentially outshine Ethereum.
Moving forward, SOL’s price is likely to fluctuate between bullish and bearish, similar to its pattern in August. The consolidation zone between $160 and $126 has proven to be a significant range for the past five months. While there is a possibility of breaking out towards $169, the broader consolidation between $186 and $126 might impede a full escape.
The bearish-neutral outlook can only be altered if $186 turns into support. This event could potentially trigger the launch of spot Solana ETFs, although it is not expected to occur in the near future. As such, traders should prepare for a range-bound market and carefully monitor key support and resistance levels for potential trading opportunities.