Solana (SOL) has captured the fifth place on CoinMarketCap’s trending list. Although the token stole a place among the top five trending list, SOL’s downtrend continues. Solana keeps falling despite the SOL ETF attracting millions of funds.
Trading at $122, Solana has captured seventh place among the tokens by the largest market cap. The token lost more than 10% during the course of the week as it kept moving downwards, and the range of fluctuation got wider and wider. When the range of price fluctuation increases while the token moves downwards, it signals that bears are dominating the market.
The above chart clearly shows that every attempt of the bulls to push the price past the weekly opening market price was futile. Every green top on the chart above was followed by a deeper crash, showing the bears’ dominance.
$55 million flows into SOL ETF
Solana did not just stumble on the technical side only but it also fumbled on the fundamental side. Funds were flowing into the SOL ETF throughout the week. On Monday, the SOL ETF saw $8 million, while on Wednesday, this amount hit $55 million. However, these inflows were not reflected on the Solana price charts.
Going deeper into the charts, Solana’s crash is quite evident. As shown in the chart below, Solana is still on a macro downtrend as it still tries to find its floor price. According to the Relative Strength Index, SOL is oversold at $122.
SOL reaches floor price
The token crashed to these low levels after a death cross. When the 50-day Moving Average crosses the 200-day MA from above, a death cross occurs. This is a bearish indication. However, now that SOL has reached its floor price, traders will step in to buy the dip. With more buyers joining this buying frenzy, SOL will start to change its direction of motion and head towards $150.
