Solana (SOL) Hits 4-Month Low as Bearish Trend Persists
Solana (SOL) is currently facing a downtrend, reaching its lowest level in 4 months. Over the last 24 hours, SOL’s price has dropped by 5%, marking a significant 45% correction in the past 30 days.
With a market cap of $70 billion, SOL's bearish momentum is clearly visible in both the Ichimoku Cloud and EMA indicators, indicating the potential for further decline.
The Ichimoku Cloud paints a bearish picture for Solana, with the price positioned below the cloud, showing a strong downward trend. The red cloud signals bearish sentiment, with Leading Span A (green line) under Leading Span B (red line).
The current setup suggests a continuation of negative momentum. As the Tenkan-sen (blue line) remains below the Kijun-sen (red line), and the Chikou Span (green lagging line) is below the price action, confirming the overall negative sentiment.
While there was a brief consolidation phase, the price failed to recover and is now stabilizing, maintaining the bearish structure.
For a potential trend reversal, the price would need to break above key Ichimoku levels, indicating a shift in momentum. However, as long as SOL remains below these levels, the bearish trend is likely to persist.
Solana Whales' Actions Reflect Market Sentiment
The number of Solana whales holding at least 10,000 SOL has been decreasing over the past month, reaching 5,017 on February 16, the lowest since December 2024.
The decline in whale addresses suggests selling pressure, contributing to the bearish trend observed in the Ichimoku Cloud. Major holders play a significant role in influencing market trends through their buying and selling activities.
Despite a recent uptick to 5,067 whales, the numbers remain below previous levels, indicating cautious accumulation but insufficient to alter the prevailing bearish outlook shown in the Ichimoku Cloud.
Will SOL Hit Lowest Levels in 6 Months?
SOL's EMA lines display a bearish setup, with short-term lines below long-term ones and a notable gap between them, indicating strong downward momentum.
If the current downtrend continues, SOL could test support levels at $133 and potentially drop further to $120 or even $110, the lowest since August 2024.
The considerable separation between EMAs reinforces the bearish trend's strength, echoing the negative sentiment from the Ichimoku Cloud indicators.
However, a potential reversal could signal a shift in momentum, with resistance levels at $152 and targets at $171 and $180 if surpassed. Users are also monitoring the impact of a $1.9 billion Solana unlock scheduled for March 1 on its price movement.