- Solana’s price has fallen over 10% after a rejection near $252, with the price stabilizing between $210 and $212.
- Solana is facing mid-term bearish risks as technical indicators, such as MACD and RSI, suggest potential further downside.
- Despite the market downturn, institutional investors continue to accumulate Solana, with over $2.8 billion in holdings from nine companies.
Solana’s price has recently struggled after facing rejection near the $252 mark. Following a significant correction, SOL dropped over 10% in the past week, with the coin hitting an intraday low of around $206 on Wednesday, September 24. By press time, the price has stabilized between $210 and $212. This price action follows a broader market trend, as crypto investors reacted to a wave of deleveraging, following the Federal Reserve’s 25 basis point rate cut on September 17.
This rate cut dampened investor sentiment, contributing to approximately $1.7 billion in crypto liquidations. Consequently, the crypto market saw caution rise, as reflected by the Fear & Greed Index hovering in the low-40s.
Solana’s Price Action and Technical Indicators
The recent price movement has led to a bearish outlook for Solana. Over the past few months, Solana’s price has been forming a rising wedge pattern, a formation that typically signals a potential price correction. Despite the recent uptick in price, the rally could be a false breakout, signaling possible further downside.
The daily MACD indicator, which tracks momentum, has recently crossed below the signal line, adding to concerns about the asset’s mid-term outlook. Furthermore, the daily Relative Strength Index (RSI) has fallen from overbought levels, possibly heading toward oversold conditions, confirming the growing risk of a decline.
Market Dynamics and the Broader Outlook for Solana
On a longer time frame, Solana’s price is forming a macro ascending triangle, which points to the possibility of a breakout in the near future. However, the recent price action mirrors patterns seen in Q4 2024, when Solana experienced a significant correction in the first half of 2025. If history repeats itself, SOL could see a drop below $200, testing its macro support trendline. Despite this risk, Solana’s overall macro consolidation suggests that a breakout could occur before the end of the year, potentially shifting the market’s outlook.
Despite recent price corrections, institutional interest in Solana remains strong. Publicly traded companies have continued to accumulate substantial amounts of SOL tokens. Data from CoinGecko reveals that nine companies have added over 13.4 million Solana coins to their treasuries, worth approximately $2.83 billion. Among these, Forward Industries holds the largest amount, with over 6.8 million coins valued at $1.58 billion. Additionally, Bera Holding’s recent rebranding to Solmate and its $300 million Solana-focused treasury project have garnered attention, with backing from major investors like ARK Invest and RockawayX. Helium Medical also added over 769,000 SOL tokens to its treasury, showcasing strong institutional support for Solana.
