Solana’s price has been flat for the past few days and is struggling to break out of the key resistance level at $200.
Investors are becoming increasingly cautious as altcoins fail to maintain their upward momentum. As a result, SOL could soon face fresh selling pressure, slowing its recent recovery trend.
Solana holders are withdrawing
Changes in the exchange’s net position highlighted signs of selling activity in Solana for the first time in three weeks. The failed attempt to break above the $200 resistance level has triggered some profit-taking among investors, suggesting a possible short-term bearish shift.
Sponsored Sponsored
This selling activity suggests that investor confidence is waning after a strong rally at the beginning of the month. If sales continue to increase, Solana may have difficulty maintaining current levels.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
The Chaikin Money Flow (CMF) indicator confirms the recent bearish sentiment. CMF is currently at a six-month low, reflecting the heavy capital outflows dominating the SOL market. This indicates that liquidity is flowing out of the asset, limiting the potential for a quick rebound and adding pressure to existing resistance levels.
The drop in CMF is especially concerning as Solana has repeatedly failed to breakout and has struggled to maintain momentum. Continued outflows could further weaken price strength and slow the recovery, particularly if broader market conditions remain uncertain or risk appetite continues to decline.
SOL price may lose important support
Solana’s price is trading at $185, and although it failed to break out above $200, it remains slightly above the $183 support level. This failure has left SOL in a vulnerable position, with investors now watching for a potential fall below the current range.
If the bearish situation continues, Solana could consolidate above $175 or fall further. Losing the support at $183 could push the price towards $175, and continued weakness could push SOL to $170 in the coming sessions.
However, if Solana rebounds from $183, the altcoin could attempt another breakout towards $200. A successful breakout would strengthen the bullish momentum and push the price above $208, effectively invalidating the current bearish outlook and signaling a return to investor confidence.
