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Solana ticked modestly lower on July 20 after testing a critical technical resistance, suggesting further pullback moves in the coming weeks.<h2 id="header-0">SOL price eyes 50% wipeout</h2>SOL&#39;s price decreased by over 4% to $44 after failing to breach a multi-week ascending trendline resistance. Interestingly, this resistance level comes as a part of what appears to be a bearish continuation pattern dubbed the &#34;<a href="https://cointelegraph.com/news/bitcoin-holds-5-week-high-as-trader-suggests-parabolic-bear-trend-is-over" rel="noopener noreferrer nofollow">bear flag</a>.&#34;A previous test of the same resistance trendline in late June had preceded a 30%-plus price drop, illustrating a higher distribution sentiment among SOL traders near the level. Therefore, the latest pullback from the same range could lead to an extended downside retracement.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/3d8ad6e8bb844de4bba2844f0e8121e5.png" />SOL/USD daily price chart. Source: TradingViewMeanwhile, the bear flag&#39;s lower trendline has been capping SOL&#39;s sharp pullback moves. As a result, SOL&#39;s extended correction scenario could have its price hit the support level, now near $35.40 — a 20% drop from current price levels.Additionally, a decisive close below the lower trendline would risk triggering the bear flag breakdown setup, wherein the price falls by as much as the height of the downtrend (called &#34;flagpole&#34;) that preceded the flag&#39;s formation.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/9546aaa80fe041b7b5dc08cae4ca7a16.png" />SOL/USD daily price chart featuring &#34;bear flag&#34; breakdown scenario. Source: TradingViewThat puts SOL on the road to levels near $21 by September, down over 50% from July 20&#39;s price.<h2 id="header-1">What experts are saying about Solana</h2>The bear flag setup appears after <a href="https://cointelegraph.com/news/3-reasons-why-solana-can-repeat-ethereum-s-2018-fractal-to-5-000-gains" rel="noopener noreferrer nofollow">SOL&#39;s 80%-plus price rally</a> since June 14, primarily driven by a similar recovery across the crypto market.For instance, Ether (<a href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow"> ETH </a>$1,256), Solana&#39;s top rival in the smart contract space, has <a href="https://cointelegraph.com/news/ethereum-price-breaks-out-hits-2-month-high-versus-bitcoin-is-the-rally-sustainable" rel="noopener noreferrer nofollow">risen over 85%</a> more than a month after bottoming out locally at $880. Similarly, Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow"> BTC </a>$18,804 is <a href="https://cointelegraph.com/news/bitcoin-holds-5-week-high-as-trader-suggests-parabolic-bear-trend-is-over" rel="noopener noreferrer nofollow">up 35% in the same period</a>.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/09cea333e74c4e64ad763a1c09256c01.png" />SOL/USD and BTC/USD daily correlation coefficient at 0.97. Source: TradingViewIndependent market analyst Altcoin Sherpa <a href="https://twitter.com/AltcoinSherpa/status/1549638557396090881" rel="noopener noreferrer nofollow">sees</a> SOL&#39;s price rising to the $60–$80 area in 2022 if Bitcoin continues to climb.Conversely, Andrey Diyakonov, chief commercial officer at Choise, notes that demand for SOL could drop due to <a href="https://cointelegraph.com/news/will-ethereum-merge-hopium-continue-or-is-it-a-bull-trap" rel="noopener noreferrer nofollow">Ethereum&#39;s transition to proof-of-stake</a> in September.&#34;The new Ethereum protocol has the same advantages as Solana, and investors may choose to stick with Ethereum should the high gas fees and scalability woes be solved,&#34; Diyakonov explained.Related: <a href="https://cointelegraph.com/news/3-reasons-why-solana-can-repeat-ethereum-s-2018-fractal-to-5-000-gains" rel="noopener noreferrer nofollow">3 reasons why Solana can repeat Ethereum&#39;s 2018 fractal to 5,000% gains</a>Paweł Łaskarzewski, co-CEO at Synapse Network, fears SOL&#39;s ongoing price rally could be a bull trap, noting that SOL, alongside the rest of the crypto market, still faces <a href="https://cointelegraph.com/news/bitcoin-lurks-by-22k-as-us-dollar-falls-from-peak-ethereum-gains-20" rel="noopener noreferrer nofollow">macro hurdles</a> led by higher inflation and rising lending rates.He said:<blockquote>&#34;We might see small ups on the price of Solana but due to the current market state, I would not expect any big changes&#34;</blockquote><h2 id="header-2">Solana funds add $110.8M in 2022</h2>Meanwhile, institutional interest in Solana continues to look better compared to Ethereum, <a href="https://coinshares.com/research/digital-asset-fund-flows" rel="noopener noreferrer nofollow">according</a> to CoinShares&#39; latest weekly report.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/2db91323a63d49dfaec9e03866b46c77.png" />Net flows into crypto funds in 2022 (by assets). Source: CoinSharesNotably, Solana-backed funds have attracted $110.8 million into its coffers since the beginning of this year. In comparison, Ethereum-based investment vehicles have witnessed withdrawals worth $446.1 million from their reserves in the same period, including $2.5 million in the week ending July 15.Read full article <a href="" rel="noopener noreferrer nofollow">https://cointelegraph.com/news/solana-price-enters-correction-territory-after-80-monthly-gains</a>

Cointelegraph: Andrey Diyakonov, chief commercial officer at Choise talks about Solana price enters correction territory after 80% monthly gains

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