Solana (SOL), one of the leading altcoins in the crypto market, has recently experienced a significant wave of selling activity, with over $470 million worth of tokens offloaded in just three days. This sharp sell-off followed a drop in SOL’s price to the $150 mark, sparking concerns among investors and raising questions about the near-term outlook for the asset.
Why Are Solana Holders Selling?
The recent decline in Solana’s price has led to a noticeable shift in investor sentiment. As the price tumbled to $150, many holders opted to liquidate their positions, likely to avoid further losses amid a lack of positive momentum. Exchange data shows that around 3 million SOL tokens were sold in a short span, reflecting a clear preference for caution over risk in the current market environment.
Technical indicators reinforce this cautious mood. The Chaikin Money Flow (CMF), a tool used to gauge buying and selling pressure, remains below zero, signaling that outflows are dominating inflows. In simple terms, more people are selling than buying, which puts additional pressure on the price and makes a quick recovery less likely.
Solana Exchange Balance. Source: Glassnode
Key Support and Resistance Levels to Watch
Despite the recent turbulence, Solana is currently trading just above a crucial support level at $154 . This zone is seen as a potential floor for the price, and as long as SOL holds above it, there’s a chance for stabilization or even a rebound. However, if selling pressure continues and the price falls below $154, the next target could be around $144, which would mark a deeper correction .
On the flip side, if Solana manages to reclaim the $161 level, it could signal a shift in momentum and open the door for a move up to $168. This would require renewed buying interest and a broader improvement in market sentiment, possibly linked to positive moves in Bitcoin, with which Solana maintains a strong correlation.
Market Outlook: Bearish, But Not Hopeless
The overall trend for Solana remains bearish in the short term, with technical patterns and momentum indicators suggesting further downside risk . However, the presence of strong support levels and the potential for a market-wide recovery mean that a reversal is still possible if conditions improve.
For now, investors are advised to keep a close eye on the $154 support and watch for any signs of renewed buying interest. As always, it’s important to stay informed and make decisions based on a clear understanding of the risks and opportunities in the crypto market.
