Solana (CRYPTO: SOL) is currently testing a crucial support level at $186, amid significant market outflows totaling nearly $400 million that are putting downward pressure on the cryptocurrency. The recent selloff has coincided with a major investment in the Solana ecosystem, as Andreessen Horowitz’s crypto arm, a16z, has provided a $50 million boost to Jito Foundation, a leading staking provider on the platform.
After reaching a peak above $200, SOL’s price has struggled to hold that level, falling to approximately $188 on Thursday. Technical charts indicate that the cryptocurrency is consolidating near the lower end of its range, with the $186 support level also aligning with the 200-day Exponential Moving Average (EMA). A failure to maintain this support could trigger further declines, with potential retracement targets set at $172 and $143 Fibonacci levels. Conversely, resistance is anticipated between $199 and $208, where the 50-day and 100-day EMAs meet.
Recent data from Coinglass reveals that Solana has experienced significant outflows, including over $110 million on October 16 alone. This pattern of withdrawals is indicative of profit-taking behavior among investors and is likely to hinder any near-term recovery efforts for SOL.
In a positive development for the Solana ecosystem, the Jito Foundation has announced a $50 million capital raise through a private token sale led by a16z. This funding will be utilized to enhance Jito’s open-source validator infrastructure and its liquid staking product, JitoSOL, which currently boasts a market capitalization exceeding $3.2 billion. Brian Smith, president of Jito Foundation, emphasized that this initiative goes beyond merely scaling the network; it is aimed at increasing value for all participants while enhancing the overall transparency and programmability of the Solana ecosystem.
As Solana navigates these challenges and investments, the community remains hopeful for a turnaround, with opportunities for infrastructure development and growth on the horizon.