Traders are now questioning whether Solana will bounce back or continue its downward trend amid negative sentiment and ETF speculation.
Solana Under Pressure: Bearish Trend Strengthens
In recent days, Solana [SOL] has been experiencing significant selling pressure. Its price has dropped from $200 to $187.99, reflecting a persistent bearish market trend.
Technical indicators, including Cumulative Volume Delta (CVD) and funding rates on futures contracts, confirm the prevailing negative sentiment. Additionally, the Relative Strength Index (RSI) at 32.54 suggests that the downward movement may continue.
Will SOL Recover, or Is a Deeper Drop on the Horizon?
According to technical analysis, SOL is showing a clear bearish pattern. Between January 31 and February 3, it consistently formed lower highs and lower lows—a classic signal for a continuing downtrend.
Although the price briefly rebounded from $187.99 to $196.93, this increase does not indicate a full recovery. Furthermore, the formation of a descending triangle suggests that if Solana fails to hold support at $191, its price could drop as low as $138.
Without a strong bullish catalyst, Solana remains in a vulnerable position, susceptible to further declines.
What Factors Are Driving SOL's Price Action?
1. Cumulative Volume Delta (CVD)
CVD on the 30-minute chart ranges between -764,722K and -786,138K.This data confirms that sellers are dominant over buyers.
2. Funding Rates on Futures Contracts
The current funding rate of -0.0170 indicates that the market is favoring short positions, as traders anticipate further declines.
3. RSI (Relative Strength Index)
RSI is at 32.54, which is not yet in the oversold zone but still signals market weakness.If buyers do not step in at key support levels, the downward trend may persist.
4. Increased Volatility
The volatility index at 236.03 reflects strong price fluctuations, making SOL a highly unpredictable asset.If Solana fails to hold the $191 level, sharp volatility could push its price down to $138.
Could Solana ETF Change the Game?
The Solana ETF, currently having an 85% probability of approval, could act as a long-term growth catalyst. Institutional investors would gain regulated access to SOL, potentially increasing demand and stabilizing its price.
However, given the current bearish market conditions, the ETF alone is unlikely to trigger an immediate price reversal. Instead, it may lay the foundation for future growth and long-term stability.
Conclusion: What's Next for SOL?
Solana is currently in a strong bearish trend, facing heavy selling pressure and increased volatility. While ETF approval could support future growth, in the short term, SOL is at risk of further declines.
If the price breaks below $191, it may soon drop to $138. On the other hand, if bulls regain control and the price rebounds, the first key target would be $200, followed by $220, to regain bullish momentum.
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