Solana (SOL) came under renewed selling pressure on July 28, falling below the key $75 support level as traders rotated capital toward Ethereum (ETH). The cryptocurrency declined nearly 5%, sliding from an intraday high close to $77 to around $73, with technical weakness and leveraged liquidations accelerating the move.
Although buyers managed to defend the $73 area, Solana remains trapped inside a broader downtrend, leaving traders closely watching whether the token can reclaim lost support or continue its decline toward lower price levels.
Solana loses key $75 support
According to market data, SOL was trading near $73.20 after failing to hold above the important $75 pivot.
The latest decline followed another rejection near the upper boundary of a descending price channel that has contained Solana’s movement since early July.
Buyers briefly pushed the token toward $77, but the rally lacked enough momentum to break above the broader resistance zone between $77 and $78.
Once SOL slipped below $75, selling pressure increased rapidly, sending the price back toward the $73 support area.
Ethereum continues to attract investor attention
Part of Solana’s weakness appears to stem from capital rotating into Ethereum.
While ETH recently reclaimed the $1,900 level, Solana has struggled to regain bullish momentum after several failed recovery attempts.
Crypto analyst Daan Crypto Trades noted that Solana has started losing an important consolidation range, making Ethereum comparatively stronger in the current market environment.
The improving ETH-to-Bitcoin ratio has further increased investor interest in Ethereum, leaving Solana trailing behind many large-cap cryptocurrencies.
Liquidations intensified the decline
Leverage also played a significant role in Solana’s latest drop.
As SOL fell through the $75–$73 range, several clusters of leveraged long positions were liquidated.
These forced liquidations added additional sell orders into the market, increasing downward pressure.
Current liquidation data shows significant liquidity concentrations around:
- $72.40–$72.70
- $73.80–$74.20
- $75
- $76.50
These zones may continue driving short-term volatility as traders battle for control.
If SOL falls below $73, additional liquidations could push prices toward the lower support zone near $72.50.
Technical indicators remain bearish
Solana continues trading inside a descending parallel channel that has produced a series of lower highs since the token peaked above $83 earlier this month.
Several technical indicators currently favor the bears.
Relative Strength Index (RSI)
The 4-hour RSI has dropped to approximately 35.6, reflecting weakening buying momentum.
Although the reading is approaching oversold territory, it remains above the traditional oversold threshold of 30, suggesting sellers may still have room to extend the decline.
Aroon Indicator
The Aroon indicator also points to continued downside pressure, indicating that recent price lows remain more dominant than recent highs.
Average Directional Index (ADX)
Despite the bearish price action, the daily ADX remains around 11.5, which generally signals a weak overall trend rather than a confirmed breakdown.
This suggests Solana could continue trading within its current range before establishing a stronger directional move.
Important price levels to monitor
For bullish momentum to return, buyers must first reclaim $74, followed by a sustained move back above the $75 resistance level.
A successful breakout above $77–$78 could invalidate the current descending channel and reopen the possibility of revisiting July’s high near $83.
However, if sellers remain in control, the next important support levels include:
- $72.50
- $70 (descending channel support)
- $68.75 (major technical support)
- $62.50 if selling pressure intensifies
These levels may become increasingly important if market sentiment remains weak.
Federal Reserve decision adds uncertainty
Market participants are also awaiting the upcoming Federal Reserve policy announcement.
Interest rate expectations, Treasury yields, and broader risk sentiment often influence demand for cryptocurrencies such as Solana.
Although Treasury yields and oil prices eased during the latest trading session, reducing some inflation concerns, traders remain cautious ahead of the Fed’s decision.
The central bank’s outlook could play a significant role in determining whether risk assets recover or continue facing short-term pressure.
Outlook
Solana remains under pressure after losing the important $75 support level, with both technical indicators and liquidation data pointing to continued caution in the near term.
The growing strength of Ethereum has also shifted investor attention away from SOL, adding to the token’s recent weakness.
For bulls, reclaiming $75 will be essential to improving market sentiment. Until then, Solana remains vulnerable to further downside, with support near $70 and $68.75 likely to be tested if selling pressure continues.
