Solana is currently retracing towards key support levels, with selling volume pushing the price towards crucial support around $140. The price action for SOL indicates a correction following a rejected top and could be approaching the base of the previous demand. The breach below the pivotal $151 support level has resulted in a drop below $150, potentially leading to a deeper retracement towards the $141 to $145 range.
Market sentiment surrounding Solana is shifting as major dormant coins are on the move. Glassnode data shows the platform’s 3rd largest Coin Days Destroyed (CDD) spike of almost 3.55B, indicating profit taking or repositioning.
Additionally, significant outflows of bridged cryptos suggest a massive efflux of investors from Solana. According to Artemis data, Solana experienced the largest outflows among top chains.
The chart reflects a substantial outflow from the Solana blockchain, while Ethereum sees a significant influx, indicating a likely liquidity flow between the two blockchains. The competition for dominance between Solana and Ethereum has garnered considerable attention recently.
What’s Next for the Solana (SOL) Price—Will It Drop Below $140 or Rebound to $160?
Following its peak near $300, SOL has been trading in a steep descending trend. While a rebound from yearly lows suggested a break from bearish influence, current price action indicates a potential deeper correction. The ongoing losses may drive prices towards critical support levels, possibly below $140.
The weekly SOL chart reveals a recovery underway within a cup & handle pattern, with the token approaching crucial support at $141. As the weekly RSI heads towards the lower support of a descending parallel channel, prices may dip towards the handle’s support. However, a potential rebound along the pattern’s support could see prices rise towards $160 in the near future.
