Solana Experiences Selling Pressure: A Technical Overview
Solana (SOL) has resumed its downward trajectory after failing to clear the $180 resistance zone. In this report, we examine the latest technical setups, on‐chain metrics, liquidity dynamics and expert insights to assess whether SOL can defend key support levels or if further downside looms.
Price Action and Technical Setup
After an unsuccessful rally above $180, SOL reversed sharply, dropping below $170 and breaching the 100‐hour simple moving average (SMA). On the hourly chart (Kraken data), a bearish trend line extends from the recent swing high, capping upside attempts around $170.
Key Levels and Fibonacci Retracements
- Immediate resistance: $168–$170 (50% Fib retracement of $180–$160 range)
- Major resistance: $172 and $180
- Support floors: $162, $160 and $155
- Downside target if $160 breaks: $142
Technical indicators remain tilted bearish. The hourly MACD histogram is expanding below its signal line, while the RSI hovers under 50, signaling persistent selling momentum.
Liquidity and Volume Analysis
Volume spiked during the $180 rejection, confirming seller conviction. On‐chain data reveals a 12% decline in 24‐hour transaction count and a 9% drop in active addresses. Moreover, Solana’s Total Value Locked (TVL) in DeFi protocols has contracted by 5% this week, reflecting temporary capital outflows.
Cross‐Chain Flows
- Bridged SOL net outflows: ~25,000 tokens over 48 hours.
- Ethereum‐Solana bridge fees have increased 15%, signaling congestion.
- Decentralized exchange volumes on Solana are down 8% vs. week ago.
Developer Activity and Network Upgrades
Despite price softness, GitHub commits on the Solana Labs repository rose by 7% ahead of the anticipated Tokio shard scheduling upgrade. This patch aims to optimize block propagation times and reduce validator resource consumption.
Expert Perspectives
“Solana’s lower on‐chain utilization is a healthy correction. If the upcoming network upgrade delivers throughput gains, we could see buyers step in around $160–$162,” says Jamie Li, blockchain strategist at Nova Research.
Outlook and Trading Strategies
Traders may consider scaling into long positions near $160 if support holds, using tight stops below $155. A break above $172–$175 could invalidate the bearish bias and open a climb toward $185–$200. Conversely, a decisive close below $155 may accelerate the sell‐off into the $142 zone.