Key Insights:
- Solana’s break below $125 signals bearish momentum, with downside targets at $100 and $60.
- $27M in long liquidations shows bulls trapped, while indicators suggest continued selling pressure.
- RSI near oversold, MACD bearish—Solana must reclaim $125 or risk further decline.
Solana price is facing strong selling pressure after breaking below the key $125 support level, raising concerns about a further decline. The crypto has dropped 24.57% in the past seven days, with its price trading at $118.26. Analysts warn that if this breakdown holds, Solana could be heading toward the $60-$70 range in the coming weeks.
Solana has been forming a rising wedge pattern, a chart pattern that is known for sending out bearish reversal signals. This wedge had held strong for several months, but it had a lower boundary of $125. Recently, this level has been broken on the price action, which shifts the trend to the downside.
Solana Price Technical Indicators Show Bearish Momentum
Several technical indicators support the bearish outlook. SOL is hugging the lower Bollinger Band at $115.73 and the 20-day simple moving average (SMA) at $149.03 is far away from serving as a resistance level. Since the continuous formation of lower highs and lower lows the last few weeks, it looks like the downtrend is still intact.
The Relative Strength Index (RSI) stands at 33.14, which is just in the range of oversold (30). If it falls further, it may represent more downside momentum; on the other hand if it recovers above 40 it could have been the first sign of a reversal.
Meanwhile, MACD (Moving Average Convergence Divergence) histogram still displays a negative value of -14.68 while the MACD and signal lines are still under the zero line, validating the dominance of bearish momentum.
Liquidations Surge as Long Traders Face Heavy Losses
According to data by Coinglass, liquidations spiked significantly, with $27.02 million in long liquidations compared to $4.94 million in short liquidations. This implies that the sellers took out the bullish traders by surprise as the price of SOL kept going down. The long liquidations highest were Bybit ($12.07M), Binance ($5.79M), and OKX ($3.7M).
Historically, large liquidation spikes align with major price swings, increasing market volatility. If the trend of long liquidations continues, it could push the price lower.
However, if short liquidations begin to rise, it could indicate a potential short squeeze, which might lead to a temporary rebound.
Will Solana Price Drop to $60, or Can Bulls Regain Control?
$115 is the next key support level that market analysts are watching very closely. A downfall from this level if it fails to hold will reach $100 with a tilt toward lower levels of $60-$70.
Solana has a 24-hour trading volume of $5.6 billion, and the majority of the recent activity has been conducted selling. Buyers will need to reclaim $125 as support and raise the price over $149 (20-day SMA) for a recovery. Until then the downside remains at risk.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
