Key indicators suggest Solana’s price could drop further. A liquidation heatmap highlights areas of high liquidity, showing significant clusters at $246 and $225. With lower trading volumes, bears may push the price below $225, especially as selling pressure intensifies.
The Chaikin Money Flow indicator shows a downtrend, meaning a capital outflow from the asset. This fall, in turn, reflects lower buying interest and heightens the chances of further losses in the asset’s price. The Balance of Power (BoP) indicator also shows bears gaining dominance, reinforcing the potential for a downturn.
Technical analysis points to the Fibonacci retracement level of $222 as the next potential target. In a deeper bearish scenario, prices could retreat to $200.
However, a rebound isn’t entirely off the table. If buying pressure picks up, SOL’s value might recover to $265. For the time being, the market is closely observing the liquidity pattern and crucial support areas to determine further movement in Solana.
With uncertainty continuing to prevail, traders are preparing for any eventual turbulence while seeking opportunities that the market may present.
