SOL

Solana has suffered a sharp drop, hitting its lowest level in months amid a broader market downturn. Bearish technical indicators and weak investor sentiment have made a recovery uncertain.

SOL’s future now depends heavily on Bitcoin’s performance. If BTC rebounds, Solana may follow. But if Bitcoin struggles, SOL could face further losses.

Investor Sentiment Turns Bearish

A key market indicator, Long-Term Holder Net Unrealized Profit/Loss (LTH NUPL), has entered the Fear zone. This suggests rising market distress among long-term SOL investors. Currently, this metric sits at a 16-month low, signaling increasing losses.

If panic spreads to retail traders, a mass sell-off could drive Solana’s price even lower. With Bitcoin struggling to stay above $80,000, Solana’s strong 0.92 correlation with BTC could amplify downward pressure.

Unless Bitcoin stabilizes and regains momentum, Solana’s price is unlikely to recover in the short term.

SOL Price Faces Critical Support Levels

Solana has dropped 28% in the past 24 hours, trading at $128. This decline follows a Death Cross formation last week, a bearish signal that suggests further downside unless strong buying pressure emerges.

Currently, SOL is holding above $120, attempting to find support. However, if market conditions worsen, Solana could break below $128, accelerating losses.

• Bearish scenario: A break below $120 could trigger a deeper decline.
• Bullish scenario: If investors buy the dip, SOL could reclaim $137 and push toward $155, invalidating the bearish outlook.

Solana’s recovery depends on Bitcoin’s trajectory and whether investors regain confidence in the market.

Solana’s price has fallen sharply, dropping 41% from its all-time high of $295.83 on January 18. Currently, SOL trades at $171.81, signaling a major market shift.

Solana Price Drops 41% After Breaking Key Support

For the first time since 2023, SOL has broken below its ascending parallel channel, a key indicator of bullish momentum. This breakdown suggests that bears have taken control, increasing the likelihood of further declines.

Solana Breaks Multi-Year Trendline—What’s Next?

Since June 2023, Solana had been trading within an ascending parallel channel, where its price moved between two upward-sloping trendlines. This structure indicated a strong bullish trend, with higher highs and higher lows.

However, SOL has now fallen below the lower support line, signaling a bearish shift. When an asset drops below such a key level, it suggests selling pressure is overpowering buyers, leading to increased market uncertainty.

Additionally, Solana’s Elder-Ray Index has remained negative since January 27, currently sitting at -30.4. This indicator measures the strength of bulls and bears, and a negative reading confirms that bears are in control, increasing the risk of further price declines.

SOL Price Targets: $136 or a Rebound?

Bearish Scenario:

• If buying pressure weakens, Solana could drop to $136.62, according to Fibonacci Retracement levels.
• If bulls fail to defend this support, SOL may fall further to $120.72, a level last seen in September 2023.

Bullish Scenario:

• If demand surges, Solana could attempt to reclaim lost ground.
• A successful retest of the breakout line could push SOL above the channel and toward $220.58.

With uncertain market conditions, traders are watching closely to see if SOL will stabilize or continue its downward trend.

Solana faces selling pressure as LIBRA token sparks investor concerns. Can SOL recover from its 10.5% decline?

Solana (SOL) Faces Bearish Pressure Amid LIBRA Token Controversy

Solana (SOL) has been trending today, but not for the right reasons. According to Santiment data, the blockchain gained attention due to the Solana-based LIBRA token. However, LIBRA’s rise has been met with skepticism, with many suspecting it to be a pump-and-dump scheme. As a result, investors faced significant losses, and negative sentiment has impacted SOL’s price.

Solana Price Drops 10.5%, Breaking Key Support

Following the LIBRA token controversy, Solana’s price has dropped 10.5% in the past 24 hours. This decline invalidated an ascending wedge pattern, a key bullish indicator. Currently, SOL is trading around $168, struggling to regain its upward momentum.

If the downtrend continues, SOL could fall further, with $156 as the next key support level. A dip to this level would extend investor losses and signal further weakness in the market.

Can SOL Reverse the Downtrend?

For Solana to break out of its bearish trend, it must reclaim $169 as a strong support level. If this happens, SOL could push toward $175 or even $183, reversing the current negative outlook. However, failure to hold key support levels may result in continued price struggles.

Solana recently fell under $200 amid market volatility, but signs suggest a potential recovery.

Solana’s Price Drop Sparks Investor Uncertainty

Solana (SOL) saw a sharp decline earlier this week, falling below $200 due to broader market volatility. This downturn has left investors questioning the altcoin’s next move.

Despite the sell-off, some indicators suggest a potential price reversal, creating an opportunity for bullish traders.

Investor Sentiment Hits Fear Zone

✅ NUPL Indicator Signals Possible Rebound

Solana’s Net Unrealized Profit/Loss (NUPL) indicator dropped from the Optimism zone into the Fear zone. This shift indicates weaker investor confidence, increasing selling pressure.

Historically, similar dips have preceded price recoveries, suggesting that SOL could see a bounce-back soon. If past trends hold, renewed buying interest could fuel a stronger recovery.

✅ Capital Outflows Hit 18-Month High

Another concerning factor is the Chaikin Money Flow (CMF) indicator, which has hit its lowest level in 18 months. This reflects significant capital outflows, marking the biggest money exit from SOL since August 2023.

For a sustained recovery, Solana needs increased buying pressure. If confidence returns, bullish momentum could push the price higher. However, continued skepticism may lead to further declines.

SOL Price Prediction: Can It Maintain the Recovery?

📈 Solana’s price has rebounded 6% in the last 48 hours, climbing back to $202 after its recent slump. However, this is still a modest recovery compared to its 27% decline over the past three weeks.

Key price levels to watch:
🔹 $200 Support: SOL has reclaimed this level, a crucial threshold for determining its next move.
🔹 $221 Resistance: Breaking above this level would confirm a stronger recovery and open the door for further gains.
🔹 $183 Support: A drop below this level would invalidate the bullish outlook, leading to extended losses.

The next few days will be crucial in deciding whether Solana sustains its uptrend or faces another sell-off.

Key Takeaways

✔ Solana fell below $200 but quickly rebounded to $202.
✔ Investor sentiment has shifted to fear, signaling uncertainty.
✔ The CMF indicator shows the largest outflows since August 2023.
✔ A break above $221 could confirm a strong recovery.
✔ Falling below $183 would trigger further downside.

After a three-day losing streak, Solana (SOL) surged 4.95%, reclaiming the $230 level. This rebound follows macroeconomic uncertainties that caused a 15% drop. The broader crypto market gained momentum after the Federal Reserve paused interest rate hikes, boosting investor confidence.

Solana’s Market Data Signals Bullish Momentum

According to TradingView, SOL opened at $227, peaked at $238, and stabilized around $232. This movement hints at a possible local bottom, setting the stage for an uptrend.

Data from Coinglass supports a bullish outlook, showing $212.88 million in long positions versus $106 million in short positions. This 66.7% long leverage dominance indicates growing trader confidence in further gains.

When long leverage rises after a decline, it often signals a potential market bottom. Market makers could take advantage by pushing prices higher, liquidating shorts, and adding to SOL’s upward momentum.

Key Resistance and Support Levels for Solana

Crypto analyst 52kskew highlighted that SOL is consolidating above a previous lower high (LH)—a critical level linked to its recent dip.

Levels to Watch:

✔ $240: Bulls must reclaim this level to target $250.
✔ $270: Acts as major resistance based on volume profile data.
✔ $222 – $230: Key support zone, strengthened by Fibonacci retracement.

A Fair Value Gap (FVG) above $230 suggests a liquidity pocket that could trigger a move toward $244. Breaking $244 could open the door to $250 or even $258.

Currently, sellers have slight control, according to the Balance of Power indicator. However, buyers could regain momentum if SOL holds above $230.

Solana Price Outlook: Breakout or Pullback?

For traders, $230 remains the key support, while $244 serves as a breakout point. A move above $244 would confirm bullish momentum, while losing $230 could lead to further downside risks.

With strong derivatives activity and growing confidence, Solana appears well-positioned for a potential rally.

Solana (SOL) has once again failed to reach the $300 mark. Seller dominance has kept the cryptocurrency’s price subdued, raising questions about its near-term outlook.

Bearish Indicators Signal Further Decline

The Balance of Power (BoP) indicator on the SOL/USD daily chart has slipped into the negative zone. This suggests that sellers have taken control, weakening Solana’s price momentum.

At press time, the BoP was recorded at -0.54. This negative reading indicates strong selling pressure, limiting SOL’s ability to rebound.

Additionally, the Chaikin Money Flow (CMF), which tracks liquidity flow, has also turned negative. A current CMF value of -0.05 highlights distribution, signaling further bearish trends.

SOL Price Prediction: Support Levels Tested

Since its all-time high on November 22, Solana’s price has been trading in a descending channel. Recently, SOL broke below the critical support level of $225.74.

If bearish momentum persists, the price could fall further to $203.63. However, if buyers regain control, SOL might rebound to $264.66 or, in a bullish scenario, surge toward $300.

Will Solana Rebound or Slide Further?

For now, technical indicators point to continued bearish control. However, a shift in buying pressure could alter this outlook. As Solana struggles to break $300, traders should watch key support and resistance levels for signs of a potential breakout or further decline.