Solana is at a critical stage as its recent decline continues to strengthen according to the channel model that has shaped its price development over the past week.

The downward movement highlights increasing uncertainty, and investors are now in a key position to decide whether SOL will continue its decline or find support for a reversal.

Solana investors remain in a bear market

The net position changes in the exchange reflect conflicting signals from Solana holders. Over the past week, SOL wallets have oscillated between accumulation and distribution, creating an unstable background.

Especially in the last 48 hours, the dominance of green bars has been noted, indicating larger exits from exchanges.

Such erratic behavior indicates uncertainty among holders more than strong conviction. Repeated fluctuations in buying and selling activity reflect markets struggling to find direction.

When selling outpaces the current accumulation, Solana's short-term outlook remains vulnerable.

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The Realized Profit/Loss Ratio also reinforces this pessimistic sentiment. The metric indicates that losses dominate Solana as holders continue to sell at lower prices to avoid deeper price drops. Panic-driven exits, even on a smaller scale, indicate a waning confidence.

When losses dominate, the price usually faces additional downward pressure unless the broader sentiment changes. Currently, the macroeconomic environment suggests that investors are preparing for potential declines and not accumulation.

Solana's price continues in a downward channel, failing to break above the resistance level of $146 earlier this week. This structure leaves two possible paths depending on future market cues and investor behavior.

If the channel remains intact and the pessimistic sentiment continues, SOL could drop below the lower trend line. Such a breakout could pull the price towards $123 or even $118 if selling pressure continues to increase.

On the other hand, a successful bounce from the channel support could trigger a recovery attempt. If SOL strengthens and challenges the resistance level of $146 again, a breakout could lift the price towards $151 and eventually $157.

However, this outcome requires the markets to return to bullish conditions to overturn the current bear market thesis.