Solana’s Big Turning Point: Will Sol Be Able to Hold on to Its Gains?
Contributor
- Solana is down 18.2% after being rejected at the $190 resistance level over the past four days.
- Metrics signaled a possible bullish reversal.
Solana [SOL] has experienced a sharp decline, losing about 18% of its value over the past four days. This bearish downturn followed a rejection at the $190 resistance level.
The rejection ended a previous bullish rally and resulted in a bearish run that is currently testing the resilience of Solana’s $160 support level at press time.
This support level coincided with the symmetrical triangle pattern, converging at around $160.
It is worth noting that the symmetrical triangle pattern sometimes indicates continuation or reversal depending on which direction it breaks out.
The convergence of the triangle’s resistance with the support level makes this area particularly important. A break to the downside could indicate further downside, while a bounce could indicate an impending trend reversal.
Source: TradingView
Bullish signs ahead?
Although we have seen a lot of bears lately, something bullish seems to be brewing.
This happened after a large market liquidation that saw $3.71 million worth of positions cleared at a price of $161, according to data from Coinglass.
Historically, in such case selling pressure is exhausted and over-leveraged bearish investors are taken out of market which creates room for new buyers and leads to price recovery.
Solana Whale Dominance
data from Hyblock shows 31.51% holdings by whales suggesting control by large investors leading volatility.Source: Hyblock
SOL’s Market Cap in BTC Terms
Solana may see increased price volatility amid recent test of symmetrical triangle support line at $160 combined with liquidation & high whale activity.A break could signify more bearish or indicate potential bullish rally.
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