Solana (
$SOL ) has recorded a 7% gain over the past 24 hours, mirroring the broader cryptocurrency market’s recovery. However, despite this positive movement, technical indicators and on-chain data suggest the rally may be short-lived as bearish sentiment continues to dominate.
Weak Buying Pressure Undermines SOL’s Rally
Although the recent price increase appears promising on the surface, it is primarily driven by general market trends rather than a surge in demand specific to Solana. The Chaikin Money Flow (CMF) indicator reveals a bearish divergence, signaling limited buying momentum.
As of the latest data, SOL’s CMF stands at -0.09, positioned below the neutral zero line. This negative reading indicates that selling pressure outweighs buying interest, despite the upward price movement. In technical analysis, such a divergence typically suggests that a rally lacks the necessary volume support and may struggle to sustain its momentum.
Futures Market Signals Bearish Outlook
Further insights into market sentiment can be drawn from Solana’s long/short ratio, which currently stands at 0.97. This ratio, sourced from Coinglass, reflects a market that is slightly more skewed toward short positions — that is, traders betting on a price decline.
A ratio below 1 implies that bearish sentiment is prevalent, with more participants expecting the asset’s value to fall. This cautious outlook in the derivatives market reinforces concerns about the sustainability of the recent price uptick.
Critical Support Levels and Price Outlook
On Monday, SOL briefly fell to a 12-month low of $95.26 before recovering to trade at $108.77 at the time of writing. Despite this rebound, the prevailing bearish sentiment poses a risk of further decline.
If SOL fails to maintain support at $107.88, it may slip back below the $100 psychological threshold. In such a scenario, a continued downtrend could push the price toward the $79 level.
Conversely, if buying interest strengthens and demand rises, SOL could challenge resistance at $111.06. A successful breakout above this level may pave the way for a rally toward $130.82.
Conclusion
While Solana’s recent gains align with a broader market recovery, key technical indicators suggest that its rally may be losing steam. With bearish divergence on the CMF and a futures market leaning toward short positions, SOL remains at risk of a price correction. Traders should closely monitor support and resistance levels, as the asset navigates a critical phase that could determine its short-term direction.
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