The wider crypto market turned weak and this shift hit Solana hard. As prices fell across the market selling pressure on SOL increased fast. Traders and investors moved into a defensive mood. This change in feeling pushed Solana below an important price level that had held for a long time.


Solana lost support near one hundred eighteen dollars. This level had stayed strong since March two thousand twenty four. For many months buyers defended it again and again. This time the defense failed. Once that level broke sellers took control and price moved lower with speed.


Adding to the negative picture a new large wallet showed clear bearish intent. The wallet moved two million USDC onto a decentralized trading platform and opened several short trades. Data trackers showed that this wallet placed a major short position on SOL worth over six million dollars near one hundred twenty three. This action suggested that some big players expect more downside.


The selling pressure is not limited to crypto alone. Traditional markets also showed weakness. In the United States funds linked to Solana saw money flowing out. Spot funds tied to SOL recorded more than two million dollars in outflows. This points to reduced confidence from larger investors and institutions. When this kind of capital steps back it often adds weight to price declines.


At the time of writing Solana traded near one hundred fifteen dollars. In just one day it fell more than six percent. While price dropped trading activity surged. Volume more than doubled and reached over seven billion dollars. High volume during a price drop often signals strong selling interest rather than calm accumulation.


Looking at longer time frames the picture looks fragile. On weekly charts the one hundred eighteen level had acted as a floor many times. Solana bounced from this zone more than ten times in the past. Losing it now changes the market structure. What was once support can turn into resistance.


Daily charts suggest a clear risk. If SOL stays below one hundred eighteen or closes days under that level price could slide much further. Some chart models point toward the high seventies as a possible target. That would mean a drop of around thirty percent from recent levels.


Technical signals support this view. Solana trades below its fifty day average which often signals short term weakness. Another trend strength indicator shows a strong directional move. When this value rises during a downtrend it often means sellers are in control and momentum is firm.


Derivatives data also shows tension. Traders are watching key zones closely. Near one hundred thirteen many positions are stacked. Near one hundred twenty another large cluster exists. Large leveraged bets sit on both sides. Short positions are heavy but long positions are even larger. This setup increases the chance of sharp moves as price tests these zones.


Overall the tone around Solana has turned cautious. Loss of long held support combined with large short bets and fund outflows paints a negative picture. If buyers fail to reclaim one hundred eighteen soon pressure could remain high. In that case a deeper pullback toward lower levels becomes a real risk.

#solana #CryptoNewss #cryptooinsigts #Binance