Solana (SOL) has experienced a sharp decline, reaching its lowest point in four months. Over the past 24 hours, SOL’s price has dropped by 5%, continuing a sharp correction that has seen a 45% decrease over the past 30 days. The ongoing downtrend has reduced Solana’s market capitalization to approximately $70 billion, with bearish sentiment dominating the market.
Ichimoku Cloud and EMA Indicators Reflect Bearish Momentum
The Ichimoku Cloud and Exponential Moving Average (EMA) indicators are signaling a strong bearish trend for Solana. The price is well below the Ichimoku Cloud, indicating that downward momentum is likely to persist. The red cloud ahead reflects a bearish sentiment, with the Leading Span A positioned below Leading Span B. This setup reinforces the ongoing negative trend.
The Tenkan-sen (blue line) remains below the Kijun-sen (red line), further emphasizing the bearish pressure. Additionally, the Chikou Span (green lagging line) is below the price action, confirming the overall negative sentiment. Despite a brief period of consolidation, the price failed to regain upward momentum, reinforcing the bearish outlook. For any signs of a trend reversal, the price would need to break above the Tenkan-sen and Kijun-sen levels and move through the cloud.
Whale Activity and Selling Pressure
Whale activity has played a significant role in the market’s downward trend. Over the past 30 days, the number of Solana whales (addresses holding at least 10,000 SOL) has steadily declined. By February 16, the number of whales had dropped to 5,017, the lowest level since December 2024, indicating that large holders were selling their positions. This reduction in whale holdings has contributed to increased selling pressure and a continuation of the negative trend.
Recently, the number of Solana whales has shown some signs of recovery, reaching 5,067, but it remains lower than in previous months. While this indicates cautious accumulation, it has not been sufficient to reverse the bearish trend highlighted by the Ichimoku Cloud and EMA indicators.
Price Levels to Watch
Solana’s EMA lines indicate a very bearish setup, with short-term EMAs positioned below long-term ones and a significant gap between them. This suggests strong downward momentum and dominance of selling pressure. If the downtrend continues, SOL may test the support at $133. Should that level fail to hold, Solana’s price could drop further to $120 or even $110, its lowest point since August 2024.
Conversely, if the trend reverses, Solana’s price could first test resistance at $152. If it manages to break through that level, the next targets would be $171 and $180. Additionally, the $1.9 billion Solana unlock scheduled for March 1 could have a significant impact on its price, either exacerbating the current downtrend or fueling a recovery.
Conclusion
Solana’s continued decline highlights a challenging period for the blockchain’s token, with bearish indicators and selling pressure dominating the market. While cautious accumulation by whales provides some hope, the overall outlook remains negative. If the current trend persists, SOL may face further downside, with key support levels at $133, $120, and $110. However, a potential reversal could lead to a recovery, with resistance levels at $152, $171, and $180 offering potential targets for traders. The upcoming Solana unlock will be a key event to watch in the coming days.
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