Solana Notes First Bout Of Selling In 3 Weeks; Price May Suffer

Solana’s price has been moving sideways over the past few days, struggling to break through the key resistance level at $200. 

The altcoin’s inability to maintain upward momentum has led to growing investor caution. As a result, SOL may soon face renewed selling pressure, slowing its recent recovery trend.

Solana Holders Are Backing Out

The exchange net position change highlights the first signs of selling activity for Solana in three weeks. The failed attempt to breach the $200 resistance level has triggered some profit-taking among investors, signaling a potential short-term bearish shift. 

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This selling activity suggests that investor confidence is weakening after a strong run earlier in the month. If selling continues to increase, Solana could face difficulty maintaining its current levels. 

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The Chaikin Money Flow (CMF) indicator supports the recent bearish sentiment. Currently at a six-month low, CMF reflects heavy outflows dominating the market for SOL. This indicates that liquidity is leaving the asset, limiting its potential to rebound quickly and adding pressure to its existing resistance levels.

The decline in CMF is particularly concerning, as Solana has been struggling to sustain momentum following multiple failed breakout attempts. Persistent outflows could further weaken price strength and delay recovery, especially if broader market conditions remain uncertain or risk appetite continues to decline.

SOL Price Could Lose Crucial Support

Solana’s price sits at $185, holding slightly above the $183 support level after failing to breach $200. This failure has placed SOL in a vulnerable position, with investors now watching closely for a potential drop below its current range.

If bearish conditions persist, Solana could either consolidate above $175 or decline further. Losing support at $183 could push the price down toward $175, with extended weakness possibly sending SOL to $170 in the coming sessions.

However, if Solana rebounds from $183, the altcoin could attempt another breakout toward $200. A successful breach would strengthen bullish momentum and push prices past $208, effectively invalidating the current bearish outlook and signaling a return of investor confidence.