Solana (SOL) Bears Threaten $225 Support as Buying Pressure Fades

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As a seasoned researcher with years of experience analyzing cryptocurrency markets, I must say that the current state of Solana (SOL) is a familiar sight to me. The persistent struggle to reclaim its all-time high is reminiscent of a marathon runner facing strong headwinds, but alas, the finish line remains elusive.

Solana’s push to regain its record peak has met tough opposition, which has given bearish investors an opportunity to push the price down, keeping it around $238 for now.

At present, Solana token (SOL) owners could be wishing for a quick rebound, yet the analysis presented here indicates that such a rapid improvement seems unlikely in the near future.

High Liquidity at Low Range for Solana

The Liquidation Heatmap hints that Solana’s (SOL) price might be due for a decrease, as it points out potential price points where significant sell-offs could happen, thus helping us comprehend the zones with high liquidity on trading platforms.

For example, when there’s a lot of liquidity accumulated in a specific area, the heatmap shifts from purple to yellow. Usually, this color shift indicates that the cryptocurrency’s price could be heading towards that location. Conversely, if the liquidity is scarce, the heatmap stays purple.

Over the next three days, the liquidation map indicates a significant amount of liquidity around $246. Additionally, there’s another notable concentration at $225, which appears to be a potential support level. Given the low trading activity, it seems likely that Solana bears could attempt to drive the price downwards towards or even below this level.

Furthermore, the day-to-day graph showing SOL/USD also demonstrates a decrease in the Chaikin Money Flow (CMF), an indicator that monitors the movement of capital into and out of the cryptocurrency.

A rising Com moving average (CMF) shows strengthening buyer demand, possibly forecasting a price increase. On the other hand, a decreasing CMF reveals intensifying seller activity and capital outflows, usually predicting a decrease in price.

For Solana, the decreasing Change in Market Value (CMV) mirrors increasing sell pressure, suggesting a higher probability of additional price drops – a possibility we pointed out earlier.

SOL Price Prediction: $300 Is Not Close Anymore

In my analysis, I’ve noticed a shift in the balance between bullish and bearish forces, as indicated by the Balance of Power (BoP). Specifically, the BoP has dropped below zero, suggesting that the momentum currently favors the bears over the bulls. This price-based indicator offers insight into the relative strength of these two groups in the market.

If the trend continues with readings increasing and staying positive, it suggests that the bulls are dominating. However, at present, it seems the bearish sentiment towards Solana is stronger. If this trend persists, there’s a possibility that Solana’s price might fall below $225.

As a researcher, if the current trend persists, the Fibonacci retracement indicator indicates a potential drop in the altcoin price. Specifically, we might expect a downturn to approximately the 23.6% level, which translates to around $222. In an extremely bearish scenario, the price could further decrease, potentially reaching $200.

On the other hand, if there’s a surge in purchasing interest, it’s possible that the predicted drop may not occur. Instead, the value of the altcoin might escalate and reach $265.

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2024-11-28 12:50