Solana Price Breaks the Crucial Support—Here’s What’s Next for the SOL Price Rally!
this Sol Price It has remained in a steep bearish channel since November 2024, with the first drop of $160. Solana has been struggling lately due to increased sales pressure and decline in network activity. For the fifth consecutive week, several on-chain indicators and DEX activity declined. This shows potential challenges when SOL faces key levels of resistance, and investors’ confidence in other tokens such as Ethereum has greatly increased.
It is speculated that the main reason for the bearish effect of SOL is binary, which has sold tokens in large quantities. The token has been bearish for five consecutive weeks when the $2 billion worth is about to be unlocked. On the other hand, Wintermute, a leading liquidity provider, has withdrawn a large amount of sol from the second line in the past few hours.
According to some reports, they have withdrawn $38 million worth of sol from the binary, suggesting that it is possible to sell tokens at high points, which could create huge sales pressure. This could further lead to major corrections due to panic sales, paving the way for the platform to accumulate Sol at discounted prices. Currently, SOL prices break key support, suggesting a possible drop below $150, which may be imminent.
Solana’s daily chart flashes with a huge bearish signal as the token loses vital support after a brief merger, $158. The Gauss channel became bearish, while the price dropped sharply. This suggests that the token must go through a huge recovery phase to bring the channel backwards. On the other hand, Chaikin currency flow (CMF) has dropped below zero after the average level has remained at average since December.
Currently, bearish forces have been increasing compared to the Bulls, which is expected to drag prices to local support areas below $140. If the Solana (Sol) price fails to hold $150, the bearish action is expected to drag and drop below the level of that range within the support zone between $138 and $139.
