Solana is experiencing a difficult period with low volatility and lack of price recovery. Recently, SOL's price has dropped to $150, losing investor confidence.
In a stagnant market situation, many holders are cashing out to avoid additional losses.
Solana Investors Turning to Selling
Exchange balances show a concerning trend for Solana. Approximately 3 million SOL tokens, worth over $468 million, were sold in the past three days. This occurred after last week's Solana price decline, with the altcoin dropping to $150 from its intraday low. Market sentiment is increasingly turning bearish, and investors are looking to secure profits.
Fear of a prolonged downturn has prompted many to liquidate their positions. This massive sell-off indicates that investors are wary of potential losses.
Solana's overall momentum is largely negative, supported by key technical indicators. The Chaikin Money Flow (CMF) remains below the zero line, indicating that outflows are dominating inflows. This suggests that selling pressure is greater than buying interest.
As long as outflows continue to exceed inflows, Solana's price may face additional pressure. The lack of positive market signals and seller dominance could lead to price declines.
SOL Price Seeking Support
Solana is currently trading at $156, above a key support level at $154. This level suggests that Solana still has some upside potential. This is due to its strong 0.75 correlation with Bitcoin. If market conditions improve, Solana could recover in the coming days.
However, recent selling pressure could push Solana below the $154 support level, potentially dropping to $144. This could extend the bearish trend, causing additional losses for investors. Increased selling pressure could further lower the price, creating negative momentum.
Conversely, if Solana can recover the $161 support level, it could bounce back from the $154 support and rise to $168. This would reverse the current bearish outlook and signal a potential pause in selling. A rebound at this level could restore investor confidence and put Solana back on a recovery path.
