Solana's Price Plummets: Bearish Sentiment Drives 15% Drop

Solana (SOL), the world's fifth-largest cryptocurrency by market capitalization, has faced a significant setback, with its price poised for a potential drop. The current market sentiment is bearish, as major cryptocurrencies have experienced notable declines. SOL has broken below its crucial support level of $180, which it had been gaining support from since November 2021 and had tested multiple times.

According to expert technical analysis, SOL's failure to sustain its price above $180 and the closing of a daily candle below this level partially confirms a bearish move. Based on recent price action and historical patterns, there is a strong possibility that SOL could witness a 15% price drop, reaching the $155 level in the coming days.

Following this notable breakdown, investors and long-term holders have been accumulating SOL tokens, as reported by on-chain analytics firm Coinglass. Data from spot inflow and outflow reveals that exchanges have witnessed a significant outflow of $115 million worth of the asset, indicating potential accumulation. In this bearish market trend, such outflows can create buying pressure and potentially lead to a price rebound.

Intraday traders appear to be following long-term holders, as they seem to be betting on the long side. Data shows that traders holding long positions are strongly dominating the asset and are over-leveraged at $174.3, with $45 million worth of long positions. With such significant open positions, this level acts as a crucial support. Conversely, $180 is another key level where traders holding short positions are over-leveraged, with $15.50 million worth of short positions. This suggests that short sellers are exhausted, which could help bulls reclaim the lost support level.

SOL is currently trading near $177 and has experienced a 6% price drop in the past 24 hours. During the same period, its trading volume surged by 110%, indicating heightened participation from traders and investors amid the price decline.