Solana (SOL) is under significant bearish pressure as the cryptocurrency faces consistent selling, pushing its price from $200 to $187.99. Despite attempts at short-term recoveries, SOL is experiencing a challenging period, with key technical indicators suggesting that further declines could be on the horizon. The question now is whether SOL can regain its momentum or if it will continue its descent toward lower levels, possibly even as low as $138.

The current market sentiment for Solana is overwhelmingly negative, according to several technical indicators. The Cumulative Volume Delta (CVD) and Funding Rates both show strong selling activity, signaling that bearish sentiment is dominating. The Relative Strength Index (RSI) is at 32.54, indicating that SOL is still in a downtrend and showing no signs of an immediate recovery.

From January 31st to February 3rd, Solana consistently formed lower highs and lower lows, a pattern typically associated with bearish markets. This pattern suggests that SOL is currently caught in a downward spiral with limited potential for a quick rebound. While there was a brief recovery to $196.93, it was not enough to indicate a full reversal, and the overall market structure remains bearish.

The formation of a descending triangle, a technical pattern often linked to continued price decline, adds to the concerns for Solana holders. If the $191 support level fails to hold, the next major support level is seen around $138. A drop to this level would represent a significant decline, as Solana would break through several support zones.

Market conditions also point to continued bearishness for Solana. The CVD values on the 30-minute chart range from -764,722K to -786,138K, indicating that selling pressure is significantly outweighing buying interest. Funding Rates are currently at -0.0170, further reinforcing the view that traders are leaning toward short positions and anticipating further price declines. These indicators paint a grim picture for SOL in the short term, suggesting that a deeper pullback is possible.

However, there is some hope for Solana in the form of an upcoming Solana ETF. Polymarket currently gives an 85% chance of Solana’s ETF approval in 2025, and such a development could serve as a long-term catalyst for price recovery. Institutional investment through ETFs often increases liquidity and demand, which could provide the foundation for a more sustainable recovery in the future. Still, even with the ETF approval, a price rebound is unlikely to happen immediately given the ongoing bearish market conditions.

The volatility index for SOL currently stands at 236.03, reflecting significant price fluctuations that make the cryptocurrency highly unpredictable. With such high levels of volatility, Solana remains highly susceptible to further downward movement. Without a major bullish catalyst, SOL is likely to remain under pressure in the near term.

In conclusion, while there is some long-term potential for Solana, particularly with the potential ETF approval, the short-term outlook remains bleak. SOL continues to face significant selling pressure, with bearish technical indicators signaling that further downside risks are present. Traders and investors should remain cautious, as the current trend suggests that SOL could drop further, potentially testing the $138 support level before any meaningful recovery takes place.