Solana's recent price drop of 7% has halted its bullish streak, failing to maintain the $175 support level. This downward movement has resulted in significant long liquidations amounting to $25 million in a single day, creating apprehension among investors and traders about its future price trajectory.
The market sentiment has evidently shifted as technical indicators such as the MACD suggest the waning of bullish momentum. The MACD histogram bars are shrinking, indicative of a potential decline as Solana's price action enters a phase of high volatility.
As Solana's price retreats to $169, missing the critical $175 support, it now faces a downward trajectory. Traders focus on the next support levels at $161 and possibly $155 if bearish sentiment persists. The potential breach of these levels could signal intensified selling pressure.
Conversely, should bullish sentiment regain traction, Solana could possibly stabilize and retrace upwards. A successful rally beyond the $175 mark could negate the current bearish outlook and drive Solana towards $180 once again.
