Solana price sunk sharply below the crucial $150 on 13th August, Monday. This fall is a stark one, down by 12. 75% over the last four days and this illustrates bearish pressure coming into the market. According to news sources, short sellers have piled $195 million on short trades targeting more losses on Solana. With the cryptocurrency market in a state of declines, the future of Solana (SOL) seems to be in the dark.
Solana Price Loses $150 Support Amid Bearish Sentiment
A week ago, Solana price experienced an incredible climb because of bullish tokens such as getting the license for Solana ETFs in Brazil. SOL for instance rose by a whopping 49.32% between August 5 and August 9, reaching its highest point to about $ 163 on August 9. This rally was mostly fueled by optimism and higher investors’ interest in Solana; the majority considered it as the cryptocurrency that is closest to a big breakout.
However this trend started to slow down as the SOL price reached the $165 resistance level. Short-term traders became keen on locking-in their profits and so began unloading their positions a move that sharply reduced demand. After to August 13, cost of Solana reached sub $148, which implies a decline of a 12.68% from its recent peak. It can be seen that the violation of the psychological $150 support level was attributed to changing the market sentiment especially after a bearish run.
“The recent downturn in Solana’s price indicates a weakening market demand, with traders increasingly positioning themselves for further downside,” said an analyst at TradingView. “The breach of $150 could be a critical turning point, as it may prompt more selling pressure.”
Bear Traders Mount $195M in Short Positions as Sentiment Turns Negative
It seems that bearish traders have been triggered by the break of the $150 support level. The data-crunching firm Coinglass has announced through the Liquidation Map that SOL traders have evaluated short positions at $ 195 million as against active long contracts of $ 165 million. This is a major change in sentiment with more bearish positions than bullish, in the market place.
The data shows that most of the big bulls who entered Solana at the beginning and filed their accounts with pump and dump groups sold most of their holdings during the ongoing Price drop of SOL down by 12.68%. With such an increasing number of short positions, bear traders can use this trend, and bring the price of Solana down even further. It is important with the $150 level being breached and broken, the market may continue to be sold down.
“With bearish traders now in control, Solana’s price could face additional downside in the coming days,” stated an analyst from Coinglass. “The mounting short positions are a clear indication that market sentiment has turned negative, and without a strong support level, Solana could see further declines.”
Bulls Face Uphill Battle: $140 Support Level in Focus
As Solana’s price keeps on stabilizing at the lower end of the market, investors are focusing on the price floor $140 level. This level is considered important to avoid further deterioration. If Solana fails to maintain a price above the $140 threshold, there is potential for a deeper decline to the $136.82 support level.
Looking at SOL/USD price, it is possible to notice the bearish sentiment that increases the level of difficulty for the bulls as the analysis of the technical indicators showed. Current resistance is pegged around the $151.96 for the index and above this level was not seen, we had a potential of reversal of the existing downtrend. But since the market sentiment is almost overbearishly negative at the moment, a reversal does not appear to be imminent.
To sum up, Solana has given up in the face of the fact that the price has fallen below the $150 mark. The short float worth $195 million indicates more bearish players are waiting for the stock to decline in the next trading sessions. The cryptocurrency has not managed to gather enough directional momentum which means $140 is the level that has to be defended by the bulls. If this support does not hold, Solana risks more declines, and, therefore, its current price of $136.82 level as the new reinforcement line to be manned as the next layer of defense.
End Note
Solana as one of the leaders of the cryptocurrency market can also be affected by this instability; its price has recently dropped several times. Solana is currently trading below $150 and short-sellers now boast of putting up $195 million to stake their bears. For now, all focus will be directed to the $140 critical level since its breakdown might lead the Solana price to the subsequent direction in the following days. Existing shareholders should exercise maintaining a bearish outlook and market trends may worsen further, unless otherwise.
As it has been highlighted with changing market dynamics, the traders and investors will be required to keep abreast with the changes. Whether Solana can come back and test $150 again or will stay below that price level is uncertain, but the upcoming days will decide the result. Keep following Deythere and keep an eye on Solana Price trends
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