Solana (SOL) Bears Tighten Grip, Aims to Drive Price to $130
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Solanaâs (SOL) price has dropped by 5% in the past 24 hours, leaving holders hoping for a recovery.
However, several indicators suggest that a significant rebound may not occur for several days or weeks.
Currently trading at $146.96, this analysis outlines why SOL could face further declines in the short term.
Solana Still Unable to Bid Downtrend Goodbye
On August 25, Solana (SOL) printed a red candlestick on the daily chart, followed by another the next day. Currently, bulls are trying to push the token toward $150. However, the formation of a rounding top during this timeframe suggests that reaching such levels might be difficult in the short term.
A rounding top is an upside-down U-shaped pattern that signals the reversal of a bullish trend into a bearish one. In this pattern, a break below the neckline confirms the bearish continuation, while a break above it could invalidate this outlook. For SOL, the price is nearing the neckline at around $142.87.
Additionally, the Bull Bear Power (BBP) indicator, which measures the strength of buyers (bulls) versus sellers (bears), is currently in negative territory. This decline suggests that selling pressure is outpacing buying interest, indicating a potential acceleration of the downtrend.
If the bearish outlook is validated, Solanaâs (SOL) price could drop by approximately 8.80%, reaching around $130.09. Additionally, the liquidation heatmap from the past 30 days reveals a significant concentration of liquidity between $130 and $138.
The liquidation heatmap highlights price levels where large-scale liquidations are likely to occur, making it a crucial tool for identifying support and resistance areas that could influence price movement.
