📉 Solana (SOL) down on August 6, 2025: Analysis
Despite robust network activity, Solana declines for the fourth consecutive day, with a drop of over 2%. Here are the main factors explaining this trend:
🔍 Technical Analysis
- The price of SOL is moving within a descending triangle, a pattern often associated with bearish pressure.
- Repeated rejections around 170–172 $ show strong resistance, preventing bulls from regaining control.
- Indicators such as Supertrend and DMI confirm a persistent bearish momentum.
💸 On-chain Data
- A net outflow of 18.62 million dollars from spot markets suggests that whales or institutional investors are temporarily withdrawing.
- The SOPR (Spent Output Profit Ratio) indicates that sellers are no longer realizing profits, reflecting a loss of confidence.
⚠️ Market Sentiment
- Short positions significantly exceed long positions, with 1.28 billion dollars against 924 million, indicating that traders anticipate a continuation of the decline.
- The Bull-Bear Power index is declining, signaling a weakening of the buying side.
🌍 External Factors
- Geopolitical headwinds (such as tensions between Israel and Iran) are cooling appetite for risky assets.
- The suspension of Pump.fun, a key player in the memecoin ecosystem on Solana, has raised doubts among some investors.