Solana's Price Drops 15% to $102, Bearish Trends Persist

Solana’s price has been a focal point for investors, with the $120 level serving as a critical support zone. Historically, when Solana fails to maintain this level, its price tends to drop rapidly. Currently, the altcoin is trading close to $102, raising concerns about a potential further decline.

Analysts suggest that Solana’s price could fall below $100. Multiple indicators, including the Super VWMA and SuperTrend, show bearish trends, with the price trading below resistance levels around $155 and $160. The Alpha Quant Signal has generated successive short signals under $155, and the RSI is below the 50 neutral point, confirming significant downtrends.

The 3-day Liquidation Heatmap indicates strong selling pressure from $210 and weak demand below $190, suggesting that sellers have been in control. The 1-month heatmap reveals a bearish market with massive liquidation clusters between $150-$160 and rising long-side liquidations. Long positions have accumulated to $6 billion, while short positions stand at less than $4 billion before reaching their peak.

Solana’s decoupling from the M2 Global Liquidity chart, similar to other cryptocurrencies like Bitcoin, highlights increasing liquidity without corresponding asset valuation. This decoupling, along with bearish sentiment from both institutions and retail investors, suggests fundamental worries about sustained price stability. Institutions, based on their extreme smart money reading, have adopted an extremely defensive role due to bearish expectations. Retail investors, while bearish, remain hesitant to fully give up on SOL.

The absence of an absolute price target at $100 allows for the possibility of a further drop, especially if sentiment remains low. General market conditions will play a crucial role in determining Solana’s future price movements. How Solana performs over the next few days will be critical in determining whether it heads for market recovery or additional price declines.