Solana's price recently exceeded $200, reaching a peak of $225.21. This rise was driven by positive market momentum and growing demand for its Layer 1 blockchain network.
Recently, diminishing buying pressure and profit-taking have led to Solana losing gains, pointing to a possible drop below $200. Currently trading at $202.51, the price has dipped 5%, with trading volume up 3% due to increased selling pressure.
Falling prices coupled with higher trading volume suggests a bearish market sentiment, denoting an active sell-off phase. During this period, many Solana traders opted to sell, causing the price drawdown.
Supported by a negative Balance of Power (BoP) at -0.43, indicating seller dominance, there is a push for further downward price movement.
The surge in Solana's funding rate, reaching an eight-month high of 0.037%, signals an imbalance with buyers in control, interpreted as a bearish indicator, prompting an imminent price correction.
As holding long positions becomes costly, some traders may exit to avoid high fees, pressuring Solana's price downwards. Leveraged long positions face potential liquidation, escalating the decline.
Solana is currently trading at $202.51, hovering above its $193.92 support level. Excessive selling pressure could lead to retesting this support.
If this support fails, it confirms a downtrend towards $169.36. Conversely, robust support defense might trigger a rebound, potentially retesting the $225.21 high.
