Solana's SOL Plunges to 4-Month Low Amidst Bearish Momentum

Solana (SOL) Continues Its Freefall as Price Hits 4-Month Low

Solana (SOL), the native token of the Solana blockchain, has been on a downward trajectory, with its price hitting a 4-month low. In the past 24 hours, SOL's price has dropped by 5%, extending a sharp correction of 45% over the past 30 days. This decline has pushed its market cap to $70 billion, reflecting the bearish momentum in the cryptocurrency market.

The ongoing bearish momentum is evident in both the Ichimoku Cloud and EMA indicators, signaling that further downside could be on the horizon. The Ichimoku Cloud for Solana shows a clearly bearish trend, with the price positioned well below the cloud, indicating a strong downward momentum. The red cloud ahead reflects a bearish sentiment, with Leading Span A (green line) positioned below Leading Span B (red line). This suggests that the prevailing negative momentum is likely to continue.

The Tenkan-sen (blue line) is below the Kijun-sen (red line), which reinforces the bearish pressure, and the Chikou Span (green lagging line) is also below the price action, confirming the overall negative sentiment. There was a brief consolidation phase, but SOL price failed to regain strength and fell again. Currently, the price is stabilizing, but the bearish structure remains intact. For any indication of trend reversal, the price would need to cross above the Tenkan-sen and Kijun-sen, followed by a movement through the cloud. However, as long as the price remains below these key Ichimoku levels, the bearish trend is likely to persist.

The number of Solana whales – addresses holding at least 10,000 SOL – has been declining steadily over the past 30 days, hitting 5,017 on February 16, the lowest level since December 2024. This indicates that large holders have been selling, contributing to the bearish trend seen on the Ichimoku Cloud. When whales reduce their positions, selling pressure often increases, reinforcing negative momentum in the market. This aligns with the overall bearish sentiment shown by the cloud indicators.

Recently, the number of Solana whales has shown signs of recovery, reaching 5,067. While this is