Solana (SOL) is currently trading around $193.95, showing a 2.59% gain in the last 24 hours. Despite the recent surge, technical signals suggest that selling pressure is building, and Solana could be setting up for a deeper pullback.
What's Happening Behind the Scenes?
- Downside Risk in Focus: Price action shows SOL struggling to extend its bullish momentum, with key resistance levels acting as a ceiling.
- Momentum Cooling: Market sentiment is shifting from aggressive bullishness to hesitation, with momentum oscillators flattening and signaling that buyers may be losing steam.
- Sellers Positioning: Bears are preparing to take advantage of this weakness, with liquidity clusters forming near support zones that could accelerate sharp sell-offs.
Potential Bearish Triggers
Short setups thrive when momentum fades. For SOL, the risk lies in a breakdown toward lower demand zones, which could spark volatility and catch overleveraged bulls off guard. If support cracks, cascading sell orders may quickly amplify the downside move.
What Traders Should Watch
- Immediate Resistance: Around $193-$195, where sellers have shown strong presence.
- Key Support Levels: Near $188 and $182. A breach here could confirm the bearish shift.
- Volatility Risk: Expect sudden price swings if momentum flips decisively in favor of bears.
According to recent analysis, Solana's price action is trapped between strong resistance at $180-$184 and support at $153-$143. A break above the resistance zone could signal a continuation of the bullish trend, while a drop below the support zone could lead to a significant price decline ¹.
Keep an eye on these key levels and adjust your trading strategy accordingly.
