Solana (SOL) has been observing a concerning scenario in the market lately. The altcoin, trading in an ascending channel since April 30, faced a downward trend towards its support line from May 20. The price trajectory of SOL suggests a shift in its short-term trend, with indications of a potential decline. Traders are monitoring the 20-day exponential moving average closely, as a breach below this level may signal a change from bullish to bearish sentiment.

Moreover, the moving average convergence divergence (MACD) data presents a bearish market outlook, highlighting the possibility of a negative crossover. Futures trading in Solana has experienced a decrease in open positions, reflecting a cautious stance by market participants. Despite the likelihood of a price drop below $163, the positive funding rate on crypto exchanges is bolstering long positions, which could drive buying pressure and elevate the price towards $172.41.