Despite showing a glimpse of bullishness, Solana (SOL) once again failed to rise to the $300 mark. The inability to reach this milestone could be linked to the dominance of Solana sellers, who outperformed buyers.
With sellers leading the way, this analysis checks whether SOL could escape another dip or not.
Solana's bearish momentum prevails
On the SOL/USD daily chart, BeInCrypto observed a drop in the Balance of Power (BoP) indicator into the negative zone. The BoP, a price-based technical indicator, assesses the strength and dominance of buyers versus sellers, offering traders valuable insights into market control dynamics and potential trend changes.
A positive BoP value suggests that buyers have the upper hand, indicating a likely price increase. Conversely, a negative BoP reading implies that sellers are in control, increasing the risk of a price decline.
In fact, at the time of publication, the BoP was at -0.54, highlighting the strong dominance of Solana sellers and indicating a potential bearish momentum for Solana price.
Solana Balance of Power. Fonte: TradingView
Another indicator that suggests a potential drop in SOL price is the Chaikin Money Flow (CMF). The CMF is a technical indicator that measures the flow of liquidity into or out of a cryptocurrency.
Using price and volume data, the indicator identifies periods of accumulation (buying pressure) and distribution (sell pressure). Positive CMF values indicate strong accumulation, suggesting bullish momentum, while negative values reflect distribution and potential bearish trends.
In fact, at the time of writing, the CMF on Solana’s daily chart has fallen into the negative region. At -0.05, the current rating reinforces the notion that Solana sellers have kept buyers at bay. If this trend continues, SOL’s price could continue to decline.
Solana Chaikin Money Flow. Fonte: TradingView
SOL Price Prediction: Support Broken, Fall Continues
Based on the daily chart, Solana price has been trading within a descending channel since reaching a new price record on November 22. In fact, the image below shows that the altcoin's value has fallen below support at $225.74.
A drop below this support suggests that SOL price is at risk of another significant correction. If validated, the token could slide to $203.63 as long as Solana sellers remain in control.
Solana Daily Analysis. Source: TradingView
On the other hand, if buyers take control, this prediction may not come true. In such a scenario, the value of the cryptocurrency could rise to $264.66. In a highly optimistic scenario, the altcoin could eventually break out to $300.
The article Solana Fails to Break $300 amid Seller Pressure appeared first on BeInCrypto.
