Solana has been facing a challenging period marked by low volatility and a lack of price recovery. Recently, the price of SOL dropped to $150, causing investors to lose confidence.
With market conditions remaining stagnant, many holders are opting to cash out rather than risk further losses.
Solana Investors Turn To Selling
Exchange balances reveal a concerning trend for Solana as about 3 million SOL tokens, worth over $468 million, were sold in just the last three days. This sell-off occurred following the Solana price fall last week as the altcoin slid to $150 during an intraday low. The market sentiment is increasingly bearish as investors look to secure their gains.
The fear of an extended decline has prompted many to liquidate their positions. This massive sell-off is signaling that investors are wary of potential losses.
The overall momentum for Solana has been largely negative, with key technical indicators supporting this outlook. The Chaikin Money Flow (CMF) is currently stuck below the zero line, indicating that outflows are dominating inflows. This suggests that there is more selling pressure than buying interest.
As long as outflows continue to outweigh inflows, Solana’s price could face additional pressure. The lack of positive market cues, coupled with the dominance of sellers, could lead to further declines in price.
SOL Price Finds Support
Solana is currently trading at $156, holding above the key support level of $154. This level suggests that Solana still has some bullish potential, mainly due to its strong correlation of 0.75 with Bitcoin. If the broader market conditions improve, Solana could see a recovery in the coming days.
However, the pressure from recent sell-offs could drive Solana below the $154 support, causing a potential drop to $144. If this occurs, the bearish trend could extend, leading to further losses for investors. The increased selling pressure might push the price even lower, resulting in more negative momentum.
On the other hand, if Solana can reclaim the $161 support level, possibly with a bounce off the $154 support, the altcoin could rise to $168. This would mark a reversal in the current bearish outlook and signal a potential halt in the sell-off. A bounce at this level could lead to renewed investor confidence and put Solana back on a path to recovery.
Disclaimer
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