Solana was under increased pressure to sell his crypto assets as the market fell. [SOL] As investor and trader sentiment has become increasingly negative.
Within this broader sell‑off, SOL was hit the hardest. SOL lost its key support at $118 which had been successfully maintained since March 2024.
This bearish view was accentuated by a newly-created wallet that deposited USDC in the amount of 2 million USDC and then opened multiple shorts. The crypto tracker says that this is the market’s current outlook. Onchain Lens.
A further analysis of whale activity reveals that the whale opened a huge SOL-short position valued at $6.15 million, and it was located at the level $122.91.
Wall Street has seen a similar sell-off.
On-chain Analytics Platform SoSoValue, U.S.–based Solana spot exchange-traded funds (ETFs) recorded a significant outflow of $2.22 million. It is possible that institutions and investors are withdrawing their capital from the asset.
Source: SoSoValue
These two developments reflect the market’s sentiment towards Solana and are reflected in its price.
Solana: Price action and key levels
As of press time SOL The price of the stock has dropped 6.65% in just 24 hours, and is now trading at $115.
SOL’s trading volume increased by 105% during this period, to $7.60 Billion. It indicates that traders and investors are very interested in the market, which is why there was a high level of participation.
SOL, based on the charts of prices, has fallen below its key support level at $118. This was a price it had held for over ten years, since March 20,24.
SOL’s weekly chart shows that the asset has previously recovered from the support more than ten time, but it is now unable to do so.
TradingView
The price chart shows that SOL may see a significant decline, possibly falling by 30 percent and reaching $78 in the next few days.
This outlook is only valid if an asset closes or remains under $118 on a daily basis.
TradingView
SOL’s negative outlook is backed up by a number of technical indicators including the Average Directional Index, or ADX.
SOL traded below the 50 EMA indicating that it is underperforming in the short-term.
ADX, a measure of current trends, has reached 33. It is above the critical threshold of 25, indicating that SOL’s trend is strong.
Investors look to short-leveraged position
In terms of derivatives, it appears that traders are strongly bearish.
CoinGlass shows that intraday traders closely monitor two key price levels. To the downside, traders are focusing on $1128, while to the upside they’re concentrating on $120.2.
These levels have led to significant positions being leveraged. Short‑leveraged positions total $55.15 million, while long‑leveraged positions are far larger, amounting to $241 million.
The current market tension is highlighted by this positioning, as traders are preparing to make sharp movements in either direction.
CoinGlass
The current positioning of intraday traders is reflected in this position.
Last Thoughts
- Solana’s outlook has become more negative due to the recent bearish behavior of market participants.
- If the asset is below $118, the price action indicates that another drop of 30% in SOL may be imminent.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: ambcrypto.com
