Solana (SOL) is under the spotlight as it approaches a crucial support level near $140, with traders and analysts closely watching for signs of a deeper correction. After a sharp 20% drop from its recent 30-day high of $187.71, Solana’s price action is raising questions about whether the digital asset could see further declines—or if it will find its footing and rebound.
Market Sentiment Shifts as Bearish Pressure Builds
Recent data from the derivatives market shows a clear shift in sentiment. Open Interest (OI) in Solana futures has dropped by 4.61% in the last 24 hours, signaling that traders are pulling back from bullish bets. Long liquidations have surged to nearly $47 million, while short liquidations remain minimal, indicating that more traders are betting against SOL in the short term. The long-to-short ratio has dipped below 1, and the funding rate has turned negative, both classic signs of growing bearish momentum.
Solana Derivatives Data. Source: Coinglas
Technical Indicators Point to Caution
From a technical perspective, Solana’s price has broken down from a triangle pattern, a move often associated with the start of a new trend. The Relative Strength Index (RSI) is at 37, suggesting that bearish momentum is increasing and that the asset is approaching oversold territory. The MACD indicator has also turned negative, reinforcing the bearish outlook.
If Solana fails to hold the $140 support, analysts warn that the next key level to watch is around $105—the lowest closing price for SOL so far this year. On the flip side, if buyers step in and the price recovers, immediate resistance is expected at the 200-day Exponential Moving Average (EMA) near $162.
SOL/USDT daily price chart. Source: Tradingview
What’s Next for Solana?
While the current trend is bearish, some market forecasts remain cautiously optimistic for the medium term. Several analysts predict that Solana could trade between $150 and $195 in June 2025, with potential for a rebound if it can reclaim key resistance levels . However, a sustained break below $140 could open the door to further declines, possibly testing the $100 mark if selling pressure intensifies .
Key Takeaways for Investors
• Solana is testing a major support zone at $140 amid rising selling pressure.
• Derivatives data shows declining bullish interest and increased short positions.
• Technical indicators suggest a bearish trend, with a risk of further downside toward $105 if $140 fails to hold.
• A recovery above $162 could signal renewed bullish momentum, but the near-term outlook remains cautious.
For those following Solana, the coming days will be critical in determining whether the asset can stabilize or if a deeper correction is on the horizon.
