- Solana price collapses to $183 after a 40% drop from $228 resistance, with a bearish RSI at 26 hinting at further declines.
- Solana's TVL fell 8% overnight to $8.45 billion, sparking concerns about a possible repeat of previous double-digit price drops.
Solana price continues its fall, remaining below $194, with a weekly decline of 19%. This resulted in $34.75 million in liquidations, with $29.43 million in long positions and $5.32 million in short positions. According to Colassing, this dynamic heralds a worrying trajectory.
Resistance around $228 at the start of the week proved too strong for SOL. A sharp 40% decline followed, taking the token from the resistance level to the current level of $183. The bearish momentum is clear, with the RSI indicator plunging to 26, well below its neutral level of 50. The possibility of SOL returning to $170 becomes stronger if $203 remains resistance.
Solana TVL drops 8% overnight
A closer look at Solana’s TVL paints a worrying picture. The data of DefiLlama reveal a sharp drop from $9.18 billion to $8.45 billion in just 24 hours. Similar drops in TVL were observed on August 3 and October 29, each followed by a price drop greater than 10%. This historical pattern fuels speculation that the current situation could lead to a repeat of this phenomenon.
Although the bearish outlook seems predominant, some analysts point out that there is a glimmer of hope. A recovery above $203 could tip the price, putting SOL on the path to retesting the $230 resistance level. If this happens, the bullish momentum could return, driving the cryptocurrency higher.
However, Solana has experienced setbacks in recent weeks. After hitting an all-time high of $263.83 last month, profit-taking sent the token down to $216. It briefly consolidated between $220 and $230, but struggled to hold at those levels. Despite the current slowdown, projections suggest that SOL could still have a chance to surpass $400 by the end of the year.
Positive points in a bearish outlook
John Michaels, a prominent cryptocurrency analyst, remains optimistic about Solana's future. Solana's steady growth over the past few months, combined with a strong support base, suggests a potential upside beyond $400, as CNF previously reported. Mr. Michaels said the rising trendline was a critical indicator, forecasting a rise to $420 during the holiday season if resistance barriers are breached.
The crypto market as a whole, fueled by bitcoin's pursuit towards the $100,000 mark, continues to generate excitement. Solana has historically thrived on bullish market sentiment, and any significant developments, such as the approval of Solana-based ETFs, could provide the boost needed for a turnaround.
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