Solana (SOL) has been facing a tough ride in recent weeks, struggling to bounce back from a significant price dip.

Investor worries have escalated following a notable downturn, compounded by a key bearish signal. The looming fear is that these factors might push SOL into deeper bearish territory in the near future.

Solana's Battle with Bearish Trend

For the first time in almost three years, Solana's price has slipped below the realized price, indicating that SOL holders are collectively incurring net unrealized losses. This situation often serves as a bearish signal, suggesting that investors may be looking to cut their losses, potentially fueling panic selling.

In a broader scope, Solana's weak macro momentum is evident in technical indicators like the Chaikin Money Flow (CMF), which has shown a substantial decline. With the CMF below the zero line, signaling more outflows than inflows, it's likely that SOL's price recovery will face obstacles.

SOL Price Vulnerability

Over the last ten days, Solana has seen a nearly 30% drop, currently hovering around $125 and just below the critical resistance level of $126. Despite a recent bounce from the $118 support level, market conditions suggest that any recovery may be short-lived, with the price still under pressure.

If SOL fails to hold above $126, a drop back to $118 or even lower to $109 could be in the cards, further emphasizing the bearish outlook and hindering recovery efforts. However, breaching and solidifying support at $126 may pave the way for a bounce towards $133, potentially facing resistance at $143. A successful breach of $143 could signal a stronger recovery and a break from the current bearish trend, offering a glimmer of hope for investors.

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