NAIROBI (CoinChapter.com)— Solana price is under pressure, struggling to hold key support as traders grow frustrated. The token has dropped over 15% in four days, hitting a three-month low of $160. Weak buying interest and rising bearish sentiment put the $170 level at risk of breaking.
Solana Struggles to Hold $170—A Breakdown Is Looming
Solana’s price action looks weak, with sellers in control. The token recently broke below $170, a critical support zone, and now hovers dangerously close to further losses. A descending triangle pattern on the daily chart suggests that a breakdown is in play, potentially sending SOL to the $133 range.
Market sentiment isn’t helping. Data from Santiment shows that traders are more bearish on Solana than they have been since Jan. 20. Historically, extreme fear has led to bounces, but there’s no guarantee this time.
A whale transaction involving the purchase of 87,328 SOL raised speculation about a possible reversal, but price action remains bearish.
Adding to the bearish outlook, Coinglass data reveals that Solana’s short positions have ballooned to $551 million, while long positions are only $253 million. This massive short exposure suggests that traders expect further downside, and any break below $160 could accelerate the sell-off.
Solana Faces Heavy Resistance at $200
Solana price is stuck in a downward trajectory, with strong resistance forming around the $200 mark. Bulls need to push past this level to regain momentum, but the odds appear stacked against them. Data from Coinglass shows that short leverage positions in Solana exceed $551 million, far outweighing long positions at $253 million. This imbalance highlights the market’s bearish stance, with traders betting on further downside.
If bears capitalize on weak support levels, Solana could slide toward $160.8, which remains the next critical demand zone. Without a surge in buying interest, SOL’s path to recovery remains uncertain. The fading meme coin hype, which once fueled Solana’s explosive rally, has now turned into a major liability, further dampening investor confidence.
Solana’s DeFi Ecosystem Booms Despite Price Struggles
Despite the bearish price action, Solana’s decentralized finance (DeFi) ecosystem is expanding rapidly. Data from DeFi Llama shows that the network has attracted $3.2 billion in stablecoin inflows, marking a 37.3% increase in just 50 days.
Major protocols like Jito and Jupiter have experienced exponential growth, with Jito’s total value locked (TVL) skyrocketing from $700 million to $2.8 billion over the past year. Jupiter’s TVL has surged from $210 million to $2.53 billion, a staggering 1,100% jump. Meanwhile, Raydium, Solana’s largest decentralized exchange, recorded a sharp increase in trading volumes, reaching $61 billion in Dec. 2024.
Solana price is at a critical juncture. Holding above $170 is crucial for bulls to regain control, but the lack of strong buying interest raises red flags. A decisive break above $185 could restore confidence and push SOL back toward $200. However, if selling pressure continues, a drop to $160 or lower remains a real possibility.