The overall crypto market remains very mixed with many investors expressing a level of uncertainty, which has kept the pressure on Solana (SOL).
After a long period of correcting with little or no movement, many investors are now hesitant to get back into SOL until it shows some recovery or positive momentum. At press time, the coin is trading at $123.49 with a decrease of 0.14% over the past 24 hours.
SOL Breaks Key Support as Momentum Weakens
The TradingView chart shows a sharp drop below $148, which was previously a support level, but now represents a strong resistance level for SOL. After dropping this support level, SOL has established a series of lower highs and lower lows, indicating bearish market conditions.
Bearish price pressure indicates there are a range of downside risks, including weak momentum indicators. More specifically, MACD is trading below its signal line, while RSI remains well below crucial overbought and oversold levels. Consequently, many buyers lack sufficient interest at current price levels to support upward movement.
Also Read: Solana (SOL) Eyes $1,000 Long-Term Target Amid Major Revenue Surge in 2025
Moving Averages Reinforce Bearish Trend
TradingView chart shows SOL trading below both the 50-day moving average and the 200-day moving average (which are both currently around $180 and $185, respectively). The coin attempts to rally but has encountered strong overhead resistance near its declining moving averages, which indicates strong selling pressure from above.
During times when sellers are driving down prices, they have displayed conviction through increased volume during each sell-down. In contrast, SOL’s failed attempts at rebounding have resulted in significantly lower trading volume, indicating little to no continued interest from bullish market participants to drive prices up.
Whale Short Signals Market Caution
Based on an update from analyst TedPillows on X, a whale has opened a $43 million short position on Solana, indicating a bearish sentiment and potential for further decline or extended consolidation of prices. This short leveraged position also coincides with an indication of weakness in the technical picture of the Solana charts.
In conclusion, Solana is vulnerable from a near-term perspective with Technical Indicators and Positioning favouring the seller. Until Solana breaks out above former support and key moving averages, there will continue to be limited upside potential for the coin, and any additional downside risk will remain.
Also Read: Solana Price Suggests a Drop Below $100 as Markets Eye Long-Term $1,000
