TLDR:
- SOL has broken below its $180 support level, with technical analysis suggesting a potential 15% drop to $155
- Exchanges reported $115 million worth of SOL outflows, indicating possible accumulation by long-term holders
- Current trading shows $45 million in long positions versus $15.50 million in short positions at key levels
- Price is trading near $177, down 6% in 24 hours with a 110% surge in trading volume
- Resistance levels established at $182, $185, and $190, with support at $174 and $170
Solana (SOL) has experienced a downturn, breaking below its established support level of $180. The digital asset is now trading near $177, marking a 6% decrease in the past 24 hours.
The price movement comes amid increased market activity, with trading volume surging by 110% during the same period. This spike in volume indicates heightened trader participation as the asset tests new price levels.
Technical analysis reveals that the $180 price point has served as a crucial support level since November 2024, with multiple successful tests during this period. However, the recent daily candle close below this threshold suggests a potential shift in market dynamics.
SOL Price
Market data from Coinglass shows that exchanges have recorded substantial outflows of SOL tokens, totaling $115 million. These outflows often indicate accumulation behavior from long-term holders, who typically move their assets to private wallets for extended storage.
The current market structure shows an interesting dynamic between long and short positions. Traders holding long positions have accumulated $45 million worth of positions at the $174.3 level, making it a key support zone to watch.
In contrast, short sellers have established positions worth $15.50 million near the $180 mark. The relatively smaller size of short positions compared to longs suggests limited selling pressure at current levels.
A bearish trend line has formed on the hourly chart, with resistance near $182. This level coincides with other technical resistance points, creating a cluster of resistance zones between $182 and $185.
The price action has established several key levels for traders to monitor. Beyond the immediate resistance at $182, additional resistance levels exist at $185 and $190. These levels represent the 23.6% and 50% Fibonacci retracement levels of the recent downward move from $205 to $174.
On the support side, the $174 level serves as immediate support, followed by $170. Technical analysts suggest that a break below these levels could lead to further declines, potentially testing the $165 area.
The market structure indicates that SOL failed to maintain momentum above $200, leading to a series of lower highs and lower lows. The price recently touched a low of $174, establishing this as a key level for market participants.
Some technical analysts project that if current support levels fail to hold, SOL could experience a 15% decline from current levels, potentially reaching the $155 price zone.
The hourly timeframe shows that SOL is trading below the 100-hour simple moving average, adding to the bearish technical setup. This indicator often serves as a reference point for short-term trend direction.
Current price action shows consolidation below the 23.6% Fibonacci retracement level of the recent downward move, suggesting that sellers maintain control of near-term price action.
Traders are closely monitoring the $185 level, as a successful break above this zone could trigger a move toward $190 and potentially $198. However, failure to reclaim these levels could result in continued downward pressure.
