The cryptocurrency market is currently experiencing a short-term shift toward a bearish trend, with several major digital assets sliding toward their recent lows. Despite the Fear and Greed Index remaining at 71—signaling “greed”—many top cryptocurrencies are under noticeable selling pressure. Among them, Solana (SOL) stands out after registering a loss of more than 5.6% in just 24 hours. This sudden downturn raises concerns about whether SOL can maintain key support at $160, or if further losses are on the horizon.
Solana Drops Despite Early-Day Strength
Solana (SOL) opened the day with strong momentum, reaching an intraday high of $176.49. However, bearish forces quickly overwhelmed the market, pushing the token down to a daily low of $159.65. As of the latest data, SOL is trading around $161.79 with a market capitalization of $84.18 billion. Notably, the 24-hour trading volume surged over 129%, reaching $5.26 billion—a clear sign of heightened market activity and increased volatility.
According to Coinglass data, approximately $23.90 million worth of SOL positions were liquidated in the last 24 hours. This spike in liquidations is indicative of aggressive sell-offs and a heightened sense of uncertainty among traders.
Is a Breakdown Below $160 Coming?
Technical indicators suggest the current momentum remains firmly bearish. The Moving Average Convergence Divergence (MACD) indicator has crossed below the signal line and fallen beneath the zero line, pointing to a negative shift in market momentum. This bearish crossover typically suggests the continuation of a downtrend and highlights the possibility of further price corrections in the near term.
Additionally, the Chaikin Money Flow (CMF) indicator currently reads –0.05, which signals moderate capital outflows from the market. When this indicator turns negative, it implies that selling pressure is outweighing buying activity—a situation that may indicate a weakening bullish trend or even the beginning of a broader price reversal.
Key Support and Resistance Levels for SOL
If downward pressure persists, the most immediate area of concern is the $160 support level. A decisive break below this zone could pave the way for further declines toward $157.14—a historically significant support level. Breaching this could trigger even steeper losses and potentially signal the beginning of a prolonged bearish phase for Solana.
Conversely, should bullish sentiment re-emerge, buyers may attempt to push the price above the minor resistance at $161.86. A confirmed breakout above this level could lead to the formation of a “golden cross” pattern, which typically signals renewed upward momentum and could carry the price toward the $162–$165 range in the short term.
Broader Technical Analysis: What the Indicators Say
- Relative Strength Index (RSI): The daily RSI currently sits at 39.95, suggesting a bearish market tone. While it has not yet reached “oversold” territory (usually below 30), it does highlight growing negative sentiment and waning buyer interest.
- Bull and Bear Power (BBP): The BBP indicator records a reading of –11.83, reinforcing the bearish scenario. This negative value shows that bears are currently dominating the market and could continue to do so unless a significant reversal takes place.
These indicators collectively suggest that any recovery attempts by Solana could face strong resistance in the near term unless substantial buying pressure returns to the market.
Market Sentiment and Liquidity Trends
One contributing factor to the intensified selling may be the macro sentiment across the crypto sector. Traders remain cautious due to broader market uncertainties, potential regulatory tightening, and ongoing profit-taking after recent gains. This hesitation is reflected in reduced liquidity, volatile price swings, and liquidations triggered by sudden sell-offs.
Solana, once celebrated for its ultra-fast transactions and rising adoption in DeFi and NFT ecosystems, may continue to face strong headwinds in the short term. However, long-term investors are keeping a close eye on how SOL reacts to the $160 level. Holding above this could provide a foundation for future rallies—especially if broader market conditions stabilize.
Is Solana at Risk of Further Decline?
In conclusion, Solana’s recent price decline below $162 raises critical technical questions for short-term traders and long-term investors alike. While some indicators suggest that SOL is approaching oversold conditions, the current momentum remains clearly bearish. A breakdown below $160 could accelerate losses toward $157 or even lower levels.
On the other hand, a bounce from this support, paired with increasing buying volume, could set the stage for a short-term recovery. Investors are advised to watch the $160 support zone and $162 resistance level closely, as these areas may determine Solana’s next big move.