- Solana’s price is struggling to maintain the $120 level, with potential for further decline.
- Market signals and sentiment indicate Solana could drop below $100 if bearish trends continue.
- Weak demand and institutional caution point to further downside risk for Solana’s price.
Solana’s SOL has been battling to maintain the $120 level Over the past few months. This price point has been a critical one, where major shifts have occurred in the past. Every time Solana fails to hold above this level, sharp drops usually follow. With Solana now sitting just around $102, many are asking: could the price drop even further and slip below $100? Let’s dive into the market conditions and see what might be ahead for Solana.
The Role of Market Sentiment and Other Factors
Market sentiment plays a huge role in price movements, and right now, the sentiment around Solana isn’t looking great. The crowd sentiment is sitting at -1.15, which indicates that retail investors are leaning bearish. But it’s the smart money sentiment that really stands out—currently at -5.00, which shows that institutional investors are highly cautious.
This is a sign that even the big players aren’t optimistic about Solana’s future, and they’ve adopted a more defensive stance in the market. One of the main reasons for this caution is the disconnect between Solana’s price and market liquidity. The M2 Global Liquidity chart reveals that while liquidity has been increasing, Solana’s price hasn’t kept pace with this growth.
What the Market Signals Are Telling Us
Looking at the current market, there’s a lot to suggest that SOL might be heading for a further decline. Recently, the price slipped below key resistance levels at $155 and $160. These levels were watched closely with tools like the Super VWMA and SuperTrend indicators, which traders often use to spot trend changes. When Solana falls below these levels, it’s usually a sign that bearish trends are taking hold, and more downward movement could follow.
Adding to this, the Alpha Quant Signal has been showing consistent short signals when Solana’s price falls below $155. This is worrying because the oscillator tied to this signal has stayed negative, meaning that downward pressure is still building. The Relative Strength Index (RSI) has also remained below the neutral 50 mark, which suggests that selling momentum is far stronger than buying interest. All these signals point to the possibility that Solana might not stop at $102—it could very well continue to fall, maybe even dipping below $100.
Another concerning factor comes from the 3-day Liquidation Heatmap. This heatmap highlights that Solana has faced strong selling pressure since hitting the $210 mark. As the price dipped further, demand below $190 remained weak, which is a sign that sellers are dominating the market. Without significant buying interest, the price could continue to slide, and $100 might not be too far off.
