Solana’s price is losing steam again, with clouds returning to its short-term outlook as the token drifts closer to a crucial support level.
Summary
- SOL has dropped to $181, falling more than 6% in 24 hours and 17% this week as bearish momentum intensifies.
- Technical indicators are flashing caution, with the RSI near 39 and moving averages tightening a setup that could invite more downside if support gives way.
- A potential rebound may depend on institutional buying or optimism surrounding Solana-based ETF approvals, both of which have previously driven major price recoveries.
Sellers Dominate as Solana Slides Below $190
After briefly trading above $220 just over a week ago, Solana has taken a sharp turn downward. The token is now hovering around $181, shedding over 6% in the past day and 17% this week.
The decline began after SOL failed to reclaim the $210 mark, leading to back-to-back red daily candles as sellers took over. Heavy liquidation pressure has made it difficult for the market to absorb the recent selling volume, forcing the price to test lower support zones.
This pullback mirrors a broader market downturn, with major altcoins also losing ground following weakness in Bitcoin and Ethereum. The pattern is similar to last week’s Friday selloff, which erased more than 20% of Solana’s market value in a matter of hours, bringing the price as low as $168.
Technical Picture: Key Levels and Indicators
On the charts, technical signals remain cautious. The Relative Strength Index (RSI) is hovering near 39, close to oversold territory suggesting that while some selling exhaustion might be setting in, downside risks persist if the selling continues.
The 20-day and 100-day moving averages are starting to converge, with SOL now sitting just above its 200-day average, a key long-term trend line. A decisive break below $180 could expose Solana to the next support near $168 last week’s crash low and potentially even $150 if the broader market continues to unwind.
Solana daily price chart | Source: TradingView
What Could Turn Things Around
For bulls to regain control, Solana needs to defend the $180 level and reclaim the 100-day moving average with strong buying pressure. A convincing move higher would help restore confidence and potentially mark the start of a short-term recovery.
Possible catalysts include renewed institutional accumulation or positive developments surrounding Solana ETF approvals both of which have historically fueled strong rebounds in SOL’s price.
Until then, bears remain in charge, and with volatility still elevated, traders will be watching closely to see whether Solana can hold its ground or if a deeper pullback is next.
