Solana is in a critical phase as the recent decline continues to confirm a channel pattern that has shaped price development over the past week.

The decline highlights increasing uncertainty, with investors now playing a key role in determining whether SOL continues to fall or finds support for a reversal.

Solana investors remain bearish

The exchange balance reflects conflicting signals from Solana holders. Over the past week, SOL wallets have swung between accumulation and distribution, creating an unstable backdrop.

Especially the last 48 hours have shown a dominance of green bars, indicating heavier outflows from exchanges.

Such inconsistent behavior points to uncertainty among owners rather than strong conviction. The repeated shifts between buying and selling reflect a market struggling to find direction.

With selling currently exceeding accumulation, Solana's short-term outlook remains vulnerable.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

The realized profit/loss ratio further reinforces this bearish sentiment. The indicator shows that losses dominate Solana as owners are increasingly selling at lower prices to avoid larger downturns. Panic-driven exits, even on a smaller scale, point to waning confidence.

When losses dominate, the price tends to face further downward pressure unless broader sentiment changes. Currently, the macroeconomic environment suggests that investors are preparing for potential downturns rather than gearing up for accumulation.

Solana's price continues to trend within a falling channel after failing to break above the $146 resistance earlier this week. This structure leaves two potential paths depending on upcoming market signals and investor behavior.

If the channel remains intact and bearish sentiment persists, SOL risks falling below the lower trend line. Such a breakdown could drag the price towards $123 or even $118 if selling pressure continues to build.

Alternatively, a successful rise from the channel support could trigger an upward attempt. If SOL regains strength and challenges the $146 resistance once again, a breakout could push the price towards $151 and eventually $157.

However, this outcome requires a renewed shift to bullish market conditions to invalidate the current bearish thesis.