Solana (SOL) has shown little sign of recovery recently, gaining just over 3% over the past month. At the time of writing, SOL is also down 5.29% on the daily chart.
As expected, the current market sentiment remains weak. And, traders are likely to continue pushing the price of SOL down.
SOL is expected to decline further.
The recent decline in SOL was accompanied by a trade from the resistance zone at $160.09, part of a consolidation pattern. This led to a further decline in price on the chart.
At press time, the decline appears to be ongoing, with SOL finding support at $128.18, a level where it is expected to stabilize temporarily before market momentum dictates a further move.
Source: Trading View
The predicted drop to this support level at $128.18 could be further confirmed by the market sentiment and the Parabolic SAR (Stop and Reverse) indicator. This is a sign of further downside as the price remains below the indicator dots.
However, TinTucBitcoin notes that SOL could be preparing for a strong rally, based on its historical patterns.
The decline is a sign of a strong recovery for SOL.
TinTucBitcoin notes that SOL’s current moves resemble those of 2021, before it reached its all-time high. This pattern means that SOL could be in an accumulation phase, just like before.
The accumulation phase is a period of time where traders gradually increase their SOL holdings in preparation for a price increase. This allows them to take full advantage of potential price increases.
Source: Trading View
If this trend continues, there is a strong possibility that SOL could see a surge of up to 182.02% to $361.88.
Declining profits cause SOL price to fall and heavy losses
Finally, recent data from Coinglass indicates that a distinct lack of market interest is dragging down the price of SOL.
This was supported by a sharp drop in Open Interest, which measures outstanding derivative contracts and is important for gauging market sentiment. In fact, Open Interest fell sharply by 8.24%, with a recorded value of $2.19 billion at press time.
Source: Coinglass
Additionally, traders who had previously predicted a rise in SOL prices were forced to exit the market, with liquidations totaling $10.88 million.
These developments, taken together, mean that bearish forces are taking over. This is likely to push SOL down to the key support level at 128.18 on the chart.
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