🟣 #Solana Drops to $163 Amid Bearish Pattern: Is $150 Next?
Solana has dropped to $163, breaking below key Fibonacci support. Network activity is slowing, and long liquidations are rising, signaling a continuation of the bearish trend.
With Bitcoin’s price in decline, Solana is struggling to maintain its bullish momentum. The SOL token currently trades at $163 after a pullback of over 2%, pointing to a deeper correction as a bearish pattern unfolds.
🔸 Solana Price Analysis
Following a sudden bearish reversal, Solana is down nearly 7% so far this week. This limits its monthly recovery to 11.01%, reversing from its 30-day high of $187.73.
On the daily chart, Solana’s price action highlights a failed attempt to break above the 61.8% Fibonacci retracement level at $184.52. This level, overlapping with the $180 supply zone, has led to the formation of a double-top pattern.
With three consecutive bearish candles on the daily chart, Solana has now broken below the 50% Fibonacci support at $165.71. A daily close below this level would raise the probability of a deeper correction, potentially down to the psychological support near $150.
This $150 support zone coincides with the Supertrend indicator line at $149 and the 38.2% Fibonacci level at $148.82. Supporting this downside risk, the daily RSI has dipped below the midpoint, signaling waning bullish momentum.
🔸 Solana Network Slows Down Amid Price Correction
Amid the steep price correction, Solana’s network activity has also declined. According to on-chain data, the number of active addresses on the network has dropped to 4.45 million, down from a 7-day peak of 5.08 million.
As network activity slows, the drop in active addresses may further reinforce the bearish trend.
🔸 Bearish Sentiment Reshapes Derivatives Market
In tandem with the network slowdown, bearish sentiment in the derivatives market continues to grow. Open interest in Solana futures is down 2.47% to $7.19 billion, while the OI-weighted funding rate has turned negative at -0.015%.