Solana (SOL) Overview

Solana (SOL), the world’s fifth-largest cryptocurrency by market cap, has recently shown signs of weakness and is on the verge of a price drop. Current market sentiment appears bearish, with major assets experiencing noticeable declines. SOL has also broken below its crucial support level of $180.

Solana (SOL) Price Action

Expert technical analysis indicates that SOL has received support from this key level since November 2024, having tested it multiple times. However, as the asset fails to maintain this support, it closed a daily candle below $180, partially confirming a bearish outlook ahead. Given recent price trends and historical patterns, SOL could witness a 15% decline, potentially reaching the $155 level in the coming days.

$115 Million Worth of SOL Outflow

Following this significant breakdown, investors and long-term holders have begun to accumulate SOL tokens, as reported by the on-chain analytics firm Coinglass. Data from spot inflow and outflow indicates that exchanges have experienced a notable outflow of $115 million worth of the asset, suggesting potential accumulation.

In this bearish trend, such outflows may create buying pressure, possibly leading to a price rebound. However, intraday traders seem to be mirroring long-term holders by placing long bets.

$45 Million Worth of Long Bet

Data indicates that traders holding long positions dominate the asset, with over-leveraged positions at $174.3 amounting to $45 million. This level serves as a crucial support. Conversely, $180 represents another significant level where short position traders are over-leveraged, amounting to $15.50 million. This exhaustion among short sellers could help bullish traders reclaim the lost support level.

Current Price Momentum

Currently, SOL is trading near $177 and has seen a 6% price drop in the last 24 hours. During this period, trading volume surged by 110%, reflecting increased participation from traders and investors amidst the price decline.