Solana (SOL), the popular high-speed blockchain platform, has recently encountered significant selling pressure, which has caused its price to struggle below key resistance levels. As the altcoin fights to maintain upward momentum, the bears seem to be gaining control, with a crucial $225 support level now in jeopardy.

Currently, SOL is hovering around $238, but with the latest market signals pointing toward increasing bearish sentiment, a further dip could be in store. Despite Solana’s previous attempts to break past its all-time high, the ongoing pressure suggests that the market might not be as optimistic about a quick recovery.

Solana’s Struggle with Resistance

Solana’s attempts to rally have faced resistance around the $240 to $250 range. As the price struggles to maintain higher levels, bears have capitalized on the situation, pushing the price lower. This resistance has been compounded by decreasing buying pressure, indicating a weakening bullish sentiment.

Investors and traders who had hoped for a swift upward movement might need to reconsider their expectations, as several technical indicators point toward further downside risk.

The Impact of Liquidity and Selling Pressure

One critical tool in understanding potential price movements is the liquidation heatmap, which provides insights into major price levels where liquidations might occur. This heatmap shows areas of high liquidity, where large positions might be forced to close if the price falls. According to the heatmap analysis, there is a significant concentration of liquidity around the $225 level. This suggests that if SOL continues its downward movement, it could easily test this level, which has become a critical support zone.

Interestingly, the liquidation heatmap also indicates some liquidity concentration around $246. While this may provide some initial support if the price climbs, it is clear that $225 is the more immediate level of concern for Solana, with bears possibly aiming to push the price towards or even below this support zone.

Chaikin Money Flow (CMF) Indicates Bearish Momentum

Another troubling sign for Solana bulls is the Chaikin Money Flow (CMF), a metric that tracks the flow of capital in and out of an asset. When the CMF rises, it indicates strong buying pressure, but a decline reflects increasing selling pressure, which may signal a potential price drop.

In Solana’s case, the CMF has been falling, signaling a shift toward bearish momentum. This decline in the CMF suggests that more investors are selling their positions, resulting in capital outflows that may further pressure SOL’s price in the short term.

Balance of Power (Bop) Falls into Negative Territory

The Balance of Power (Bop) is another important indicator to watch when analyzing market sentiment. This metric compares the strength of buyers (bulls) against sellers (bears). A positive Bop indicates that bulls are in control, while a negative Bop suggests that bears are dominating the market.

For Solana, the Bop has recently fallen into negative territory, signaling that bears have the upper hand. This shift in the market dynamics reinforces the bearish outlook for SOL, with the potential for the price to slide below the $225 mark. If this trend continues, SOL could face further declines.

Fibonacci Retracement Points to Potential Drop to $222

Technical analysts often rely on Fibonacci retracement levels to predict potential support and resistance levels during price corrections. In Solana’s case, the Fibonacci levels suggest that if the price breaks below $225, the next support could be at the 23.6% retracement level, around $222.

In a more bearish scenario, the price could even fall to $200, a level that would represent a significant decline from its current position. While such a dip might seem drastic, it remains within the realm of possibility given the current market sentiment.

Outlook for Solana

The short-term outlook for Solana appears to be under threat as bearish forces take control. The combination of low buying pressure, rising selling activity, and the negative indicators on the charts all point toward a potential drop in price. Traders and investors will need to watch the $225 support closely, as a break below this level could open the door for further declines.

However, the cryptocurrency market is highly volatile, and price action can change quickly. While bears currently have the upper hand, a strong reversal could occur if new buying interest emerges or if the broader market sentiment improves.

For now, Solana’s price will likely remain in a tight range, with the risk of further downside if the bearish momentum persists.