Solana is experiencing a challenging period marked by low volatility and a lack of price recovery. Recently, the price of SOL dropped to $150, resulting in a loss of investor confidence.
Given that market conditions remain stagnant, many holders are choosing to withdraw funds to avoid further losses.
Solana Investors Are Turning to Selling
The balance on exchanges indicates a concerning trend for Solana, as approximately 3 million SOL tokens, worth over $468 million, have been sold in just the last three days. This sell-off occurred after the price of Solana fell last week, when the altcoin dropped to $150 during an intraday low. Market sentiment is becoming increasingly bearish as investors seek to lock in their profits.
Fear of a prolonged downturn is prompting many to liquidate their positions. This mass sell-off signals that investors are wary of potential losses. Overall momentum for Solana is mostly negative, as confirmed by key technical indicators. The Chaikin Money Flow (CMF) is currently below the zero line, indicating that outflows dominate inflows. This suggests that selling pressure exceeds buying interest.
While outflows exceed inflows, the price of Solana may face additional pressure. The lack of positive market signals combined with seller dominance could lead to further price declines. The price of SOL finds support.
Solana is currently trading at $156, holding above a key support level of $154. This level indicates that Solana still has some bullish potential, mainly due to a strong correlation of 0.75 with Bitcoin. If overall market conditions improve, Solana may recover in the coming days.
However, pressure from recent sell-offs may push Solana below the support level of $154, potentially leading to a drop to $144. If this happens, the bearish trend could continue, resulting in further losses for investors. Increased selling pressure could further lower the price, leading to more negative momentum. On the other hand, if Solana can regain the support level of $161, possibly bouncing off the support at $154, the altcoin could rise to $168. This would signify a shift in the current bearish outlook and signal a potential halt to the sell-off. A bounce at this level could restore investor confidence and put Solana back on the path to recovery.
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