- Solana experienced an 18.2% decline after being rejected at the $190 resistance level recently.
- The downturn followed a prior bullish trend and is now testing the $160 support level that aligns with a symmetrical triangle pattern.
- According to Coinglass data, a significant market liquidation occurred, potentially exhausting selling pressure and setting the stage for new buyers.
Solana’s recent price movements indicate volatility and potential for significant shifts in market dynamics.
Solana Faces Key Support Test After Rejection at $190 Resistance
In a significant bearish turn, Solana [SOL] has dropped approximately 18% over the past four days, following a rejection at the crucial $190 resistance level. This sharp decline ended a prior bullish rally, and the cryptocurrency is now testing the $160 support level, which coincides with a symmetrical triangle pattern. A break below this support could indicate further downside risk, while a rebound might signal the end of the bearish phase.
Market Liquidation Signals Potential Shift
According to recent Coinglass data, the market saw a massive liquidation of $3.71 million worth of positions at the $161 price point. Historically, such heavy selling pressure may signify exhaustion among bearish investors, especially those who are over-leveraged. When these positions are cleared, it can pave the way for new buyers to enter the market, potentially leading to a price recovery. Such market dynamics often create opportunities for a bullish reversal.
Influence of Whale Holdings on Solana’s Volatility
Data from Hyblock indicates that 31.51% of Solana’s total supply is controlled by whales, or large investors. This concentration typically results in heightened volatility, as these big players can significantly influence price movements. The ongoing test of the $160 support level, coupled with the high participation of whale investors, suggests that Solana is in a critical phase. The resultant price action could be volatile, reflecting the large-scale movements by these influential entities.
Conclusion
Solana is currently navigating a noteworthy make-or-break period. The coin’s interaction with the symmetrical triangle support line at $160, along with recent market liquidations and substantial whale activity, indicates potential for considerable price fluctuations. A break below $160 could trigger further declines, whereas a bounce-back might set the stage for a new bullish trend. Investors should keep a close watch on these developments to gauge the next major movement in Solana’s market trajectory.
