Solana’s (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 happen for several days or weeks.
Solana (SOL) printed a red candlestick on August 25, followed by another the next day. Currently, bulls are trying to push the token toward $150, but a rounding top formation during this timeframe signals difficulty in reaching such levels in the short term.
The Bull Bear Power (BBP) indicator is in negative territory, suggesting selling pressure outpacing buying interest, indicating a potential acceleration of the downtrend. If this bearish outlook is validated, SOL's price could drop by approximately 8.80%, reaching around $130.09.
The liquidation heatmap from the past 30 days shows significant liquidity between $130 and $138, a crucial tool for identifying support and resistance areas that could influence price movement. High liquidity at a specific price range increases the likelihood that the price will move in that direction.
Insufficient buying pressure could drive SOL's price down to the $130 to $138 range. However, a significant liquidity concentration near $162 could drive the price higher if market conditions improve.
According to the Fibonacci retracement indicator, SOL must surpass preceding Fib levels to reach new price targets. SOL appears to be on the verge of sliding below the 38.2% Fib level at $142.09.
If selling pressure intensifies, SOL’s value could drop below $130, reaching the 23.6% nominal pullback level at $129.85. Conversely, if buying pressure strengthens, a rebound toward $161.87 is possible.
