Solana is testing a key support level at $160. A move in either direction will be a turning point for SOL, here’s how.
- Solana has dropped 18.2% after being rejected at the $190 resistance over the last four days. Metrics signaled a potential bullish reversal.
Solana [SOL] has faced a sharp decline, dipping by about 18% in value over the last four days. This bearish downturn comes after a rejection at the $190 resistance level.
The rejection ended a previous bullish rally, leading to a bearish run that is currently testing the resilience of the Solana support level of $160 at press time.
This support level aligned with the symmetrical triangle pattern, confluencing at around $160.
It is worth noting that the symmetrical triangle pattern sometimes indicates a continuation or reversal, depending on which way it breaks out.
The convergence of the triangle’s resistance with the support level makes this area especially important. A break below may signal more downside potential, while a bounce could suggest an impending reversal.
Source: TradingView
Bullish signs ahead?
Although we have seen a lot of bears lately, it seems that there may be something bullish brewing.
This comes after a big market liquidation where $3.71 million worth of positions were cleared at the $161 price point, according to Coinglass data.
Historically, when this happens, selling pressure is exhausted and over-leveraged bearish investors are being taken out of the market. This creates room for new buyers to enter, which could result in prices bouncing back.
Source: Coinglass
Solana whale dominance
According to Hyblock data, 31.51% of Solana is held by whales. This indicated that these large investors controlled a significant amount of the total supply compared to smaller retail investors.
This kind of concentration often leads to more volatile price action.
Source: Hyblock
Realistic or not, here’s SOL’s market cap in BTC’s terms
Solana is in the middle of a make-or-break period. The recent test of the symmetrical triangle support line at $160, paired with liquidation and high whale activity, can give way to increased price fluctuation.
A break could mean a more bearish run, while a price reversal might indicate a potential bullish rally.
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