How Solana Bears Could Send SOL Price Below $225
Solana’s (Sol) efforts to regain all-time highs have encountered strong resistance. This struggle also made Solana As the price continues to hover around $238, the bears will push the price lower.
For now, SOL holders may be hoping for a quick economic recovery, but the latest outlook analyzed here suggests that may not be the case.
Solana’s high liquidity within a low volatility range
The liquidation heat map is an indicator that shows SOL price may have started Make a retracement. Heatmaps predict price levels at which significant liquidations are likely to occur and help understand areas of high liquidity on the order book.
For example, if there is a high concentration of liquidity in a specific area, the heatmap color will change from purple to yellow. In most cases, this change in color indicates that the price of the cryptocurrency may be moving towards this area. On the other hand, if the concentration is low, the color remains purple.
Looking at the three-day time frame, the liquidation heat map shows a high concentration of liquidity at $246. However, another price is also holding at $225, which appears to be a support level. Due to low transaction volume, Solana Bears Could Push Altcoin prices are close to or below this point.
Additionally, the daily SOL/USD chart shows a decline in the Chaikin Fund Flow (CMF) indicator, which tracks the cryptocurrency’s liquidity inflows and outflows.
An increase in CMF indicates Buying pressureindicating potential price increases. Conversely, falling CMF reflects increased selling pressure and capital outflows, which typically indicates falling prices.
In the case of Solana, the decline in CMF coincides with rising selling pressure, reinforcing the likelihood of further price declines, as highlighted previously.
SOL Price Prediction: $300 No Longer Close
Another assessment on the daily chart shows that the balance of payments (BoP) has fallen into negative territory. The BoP is a price-based indicator used to compare the strength of longs and shorts.
When the reading is rising and positive, it means bulls have the upper hand. But in this case, Solana bears appear to be in the driver’s seat. should this trend If it remains unchanged, then the price of SOL may fall below $225.
If the Fibonacci retracement indicators hold, the altcoin could drop to 23.6% levels around $222. In a highly bearish scenario, it could drop to $200.
However, this may not happen if buying pressure increases. in this case, Altcoins may rise in value to $265.
Disclaimer
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