The Solana token has lost nearly 10% of its value over the past week, and the downward pressure does not seem to be easing. The price of the token dropped today to $129 amid rising geopolitical tensions between the United States and Iran.
As the second quarter of 2025 approaches its end, rising sales put the price of Solana at risk of falling below the critical support level of $130. This analysis explains why.
Solana continues to decline as key indicators remain bearish.
Over the past seven days, the price of SOL has steadily declined. This has been accompanied by a drop in the Chaikin Money Flow (CMF), which has deepened into negative territory. At the time of this report, the Chaikin Money Flow (CMF) for SOL is -0.13.
The Chaikin Money Flow (CMF) measures the flow of money into and out of an asset over a specified period, typically 20 or 21 days. It combines price and volume data to assess buying and selling pressure. When the Chaikin Money Flow is positive, buying volume prevails, and capital flows into the asset, indicating a potential bullish trend.
Conversely, when the Chaikin Money Flow (CMF) turns negative, selling volume exceeds buying volume. This indicates weak demand for SOL, especially if the negative reading deepens with a price decline.
Additionally, Solana's Elder-Ray Index, which measures the balance between buyers and sellers, stands at -20.74, indicating that sellers have a strong hold.
This indicator measures the strength of bullish and bearish movements in the market by analyzing the difference between the asset's price and its moving average. When the indicator is negative, bearish trends dominate, as prices consistently fall below the average, indicating that selling pressure outweighs buying interest.
Will SOL recover above the $130 level, or is a drop to $123 imminent?
This bearish dominance reflects an increasing belief that the price of SOL may decline further, especially if the $134 level fails to hold as support.
Meanwhile, a drop below this level could open the door to deeper losses, potentially dragging SOL down to $123.49.
However, if the bulls manage to regain control, they could push the price of Solana to $142.59.