Solana (SOL) has been under significant bearish pressure in recent days, with its price teetering near critical support levels. While the decline has been gradual so far, a break below the $225 mark could pave the way for a steeper downturn. Here’s a closer look at the current scenario and what might help reverse the bearish trend.
Liquidity Zones Signal Increased Pressure
Analyzing Solana’s liquidity map reveals a concentration of high liquidation levels around $246, suggesting that the asset is under heavy sell-side pressure. Currently, the nearest support lies at $225, a level that could soon be tested if bearish momentum continues. If broken, SOL could see a further drop, potentially revisiting the $200 mark.
The Chaikin Money Flow (CMF), an indicator that tracks buying and selling pressure, has been trending downward, signaling growing selling activity. This aligns with the increasing likelihood of a price pullback.
Technical Indicators Suggest More Downside
At the time of writing, Solana is trading at approximately $236.46, reflecting a modest 1% gain over the past 24 hours. However, the Balance of Power (BoP) indicator, which measures the dominance of buyers versus sellers, has slipped into negative territory, confirming that sellers are currently in control.
Should the bearish sentiment persist, Solana’s price could dip toward $222, which aligns with the 23.6% Fibonacci retracement level. In a worst-case scenario, the token might tumble as low as $200 if broader market conditions fail to improve.
Outlook for Recovery
For Solana to reclaim bullish momentum, it would need to break back above $246 and sustain its position. Positive developments in the overall crypto market or increased institutional interest in SOL could act as catalysts for a rebound. Without such drivers, however, the path to $300 appears increasingly distant.
Bottom Line
Traders and investors should closely monitor Solana’s performance near the $225 support level. A decisive move in either direction could set the stage for its next major trend. While the current technical setup points to further downside, a recovery remains possible if key support holds and broader market sentiment improves.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.
