SOL is a tongue piercing: From RWA boom to hidden warnings

Solana (SOL) is currently trading at $81.53, down 4.57% in the past 24 hours. On the surface, everything looks great: institutional inflows of $2.4 million, the RWA market up 58.7% surpassing $1.1 billion, and even the European Central Bank is considering using SOL for digital euro. This truly is a classic “sell the news” story: positive factors intertwined with hidden risks, and any investor needs to understand both sides of the coin.

Institutional inflows but smart money has exited

Capital from large institutions appears impressive, but blockchain data paints a different picture. Just in the past hour, $23 million has been withdrawn from the market, with 67% coming from large transactions. This clearly indicates: strong financial players are changing strategies.

This is not a sign of long-term confidence. Institutions are not entering because they believe in SOL, but for short-term profit opportunities. When market sentiment shifts or they find better targets, they can withdraw quickly at any time. The “institutional adoption” story of SOL is a sell-the-news scenario: attractive until it’s no longer attractive.

Market sentiment: From Ethereum expectations to practical concerns

Recently, SOL’s narrative has leaned towards comparisons with Ethereum: a rising Layer 1 network with huge potential. RWA boom, growing applications, and government interest—all reminiscent of ETH’s early growth.

However, this similarity is the biggest psychological trap. Why? Because overly high expectations often lead to sharp drops. Markets tend to price in forecasts rather than actual value, and when institutional money starts re-evaluating assets, retail investors often find themselves on the wrong side of the trade.

Technical signals warn of danger ahead

The current technical profile of SOL shows clear warning signs. All 7-period EMAs are in a downtrend, MACD is repeatedly crossing down (dead cross), and the price is near the lower Bollinger Band. These are not bullish signals.

From support and resistance perspectives, the $79.5 level is an immediate barrier. If SOL breaks below this, the next strong support is at $76.8. Notably: the current price of $81.53 may not be the bottom, but just the average of a broader range.

Opportunity or trap: A trader’s guide to sell-the-news

For those wanting to participate, a sell-the-news approach is essential. This is not the time to deploy all your capital:

Short-term strategy:

• Around $79.5, if the price stabilizes, consider a small test buy
• First resistance target: $82.5
• Second target: above $85.5

Risk management:

• If the price continues to fall below $79, exit immediately
• Next support level to watch: $76.8
• Do not commit all your funds at this price level

The sell-the-news advice for SOL is: it’s genuinely valuable, but the current price isn’t necessarily the best entry point. Recovery opportunities exist, but risks are intertwined. Only traders with a clear risk management plan should engage in this market.