Solana (SOL) has encountered significant challenges in recent weeks, with its price struggling to break above the $135 resistance level. Currently trading at approximately $130, Solana’s price movement has stalled as market demand for the cryptocurrency continues to decline. This stagnation is reflected in various key metrics, including the asset’s velocity and the Market Value to Realized Value (MVRV) ratio, which suggest that investor sentiment is weakening.

One of the primary factors contributing to Solana’s struggles is the drastic drop in its velocity, which has hit a five-month low. Velocity measures how frequently an asset is traded in the market, and the current dip indicates that fewer investors are actively trading SOL. This trend is reminiscent of market conditions from October 2024, signaling a loss of traction for the token. As velocity declines, the overall demand for Solana diminishes, further adding to the bearish sentiment surrounding the coin. With fewer traders entering the market, the recovery potential for SOL appears to be increasingly remote, especially in the face of weakening market conditions.

The lack of demand is further compounded by the MVRV ratio, a metric that measures the average profit or loss of recent buyers. Currently, the two-week MVRV ratio is below zero, indicating that those who have purchased SOL recently are at a loss. This could lead to two possible outcomes: investors either hold their positions in the hope of a price rebound or, more likely, sell to minimize their losses. The latter scenario would exacerbate the selling pressure on SOL, pushing the price further down and reinforcing the bearish outlook for the token.

With the overall sentiment leaning negative, the price of Solana faces significant hurdles. Despite brief moments of upward movement, SOL has struggled to maintain any substantial momentum. The price has remained capped below the crucial $135 resistance level, and it seems unlikely that it will breach this mark in the short term. The lack of positive market signals and investor interest means that Solana is likely to continue trading within a range, stuck between resistance at $135 and potential support levels below.

If the price fails to overcome the $135 resistance soon, Solana could see further declines. The next key support levels for SOL are around $125 and $118, which could be tested if the downward trend continues. These levels will be crucial for determining whether Solana can stabilize or if it will descend further into a bearish market phase.

However, there is still a possibility for a rebound if Solana can break through the $135 resistance. A successful breach could propel the price toward $148, with $150 serving as the next key target. If this happens, the bullish scenario would be validated, and Solana’s price could continue its upward movement, invalidating the current bearish outlook.

In conclusion, Solana’s price is struggling to gain traction as market sentiment weakens and demand drops. The cryptocurrency faces significant resistance at the $135 level, with declining circulation and a negative MVRV ratio adding further pressure to the price. Until Solana can overcome these hurdles, the likelihood of a sustained recovery remains uncertain, and traders should remain cautious about potential declines.