Solana (SOL) has experienced a 5% drop in price over the last 24 hours, causing concern among holders who are hoping for a rebound. However, several indicators suggest that SOL might not recover anytime soon.Â
Currently, Solana is trading at $146.96, and signs point to further declines in the near term.
Solana Struggles Amid Bearish TrendÂ
On August 25, Solana (SOL) formed a red candlestick on the daily chart, signaling a bearish trend that continued the next day. Bulls are attempting to push the price toward $150, but a rounding top pattern indicates that reaching this level may be challenging.Â
A rounding top is a pattern that looks like an upside-down “U” and signals a shift from a bullish to a bearish trend. If the price breaks below the neckline of this pattern, it confirms a bearish continuation. For SOL, the neckline is around $142.87, and the price is approaching this critical level.Â
Additionally, the Bull Bear Power (BBP) indicator, which measures the strength of buyers versus sellers, is in negative territory. This suggests that sellers are currently stronger than buyers, which could accelerate the downtrend.Â
If this bearish trend continues, Solana’s price could drop by another 8.8%, potentially reaching around $130.09. The liquidation heatmap from the last 30 days shows significant liquidity between $130 and $138, which could act as a support zone.Â
Liquidity Levels Could Influence SOL’s MovementÂ
The liquidation heatmap indicates where large-scale liquidations might occur, highlighting key support and resistance levels. In Solana’s case, a lack of buying pressure could push the price down to the $130 to $138 range. However, if market conditions improve, there is also substantial liquidity around $162, which could pull the price higher.Â
SOL Price Prediction: Bearish Momentum PersistsÂ
The daily chart also shows potential price targets for SOL based on the Fibonacci retracement indicator. This tool identifies support and resistance levels using a series of ratios. For Solana’s price to move to the next level, it must first break through the current one.Â
According to the chart, SOL is close to slipping below the 38.2% Fibonacci retracement level at $142.09. If selling pressure increases, Solana’s price could fall below $130, approaching the 23.6% retracement level at $129.85. On the other hand, if buyers regain control, a rebound toward $161.87 is possible.Â
For now, Solana remains under pressure, with the bearish trend showing no signs of letting up. Holders will be watching closely to see if the price can find support or if further declines are on the horizon.Â
