Solana (CRYPTO:SOL) is likely to encounter a challenging market environment in September 2024, with its price expected to stay below $160 due to ongoing bearish conditions.
Experts suggest that the absence of Solana from the ETF market and recent institutional fund withdrawals could result in a subdued performance for SOL this month.
In August, Solana saw significant outflows from institutional investors, amounting to $34.3 million by the end of the month.
Griffin Ardern, Head of BloFin Research & Options, noted that Solana's current market position reflects limited investor confidence, stating, "For Solana, we tend to believe that its price performance will be similar to ETH, but its price will be more solid than ETH."
Ardern also highlighted that Solana's inability to attract traditional market investors affects its liquidity, making it more vulnerable to market volatility compared to Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH).
Despite the overall negative sentiment, there are potential opportunities for Solana.
Ardern pointed out that Solana offers more attractive narratives and applications for investors, such as meme coins, which could appeal to a specific investor base.
This suggests that Solana might have the potential to outperform Ethereum in the future due to these unique investment opportunities.
For September, Solana's price is anticipated to fluctuate within the $126 to $160 range, maintaining a consolidation zone that has been in place for the past five months.
While there is a possibility of a breakout toward $169, broader consolidation between $186 and $126 could limit any significant upward movement.
Ardern mentioned that a change in Solana's bearish-neutral outlook could only occur "if $186 flips into support," which might pave the way for the introduction of spot Solana ETFs, though such a development is not expected soon.
At press time, the Solana price was $128.87.