Amid the bearish market sentiment, SOL, the native token of the Solana blockchain, is attracting attention due to its recent price decline reaching key support levels known for price reversals.
$100 Million Worth SOL Outflow
Per data from CoinGlass, there was a significant outflow of over $100 million worth of SOL tokens in the past 48 hours. Given the current market sentiment, this outflow potentially indicates accumulation, creating buying pressure.
Traders' Bearish View
Data shows short sellers are making significant bets on a price decrease. The $236.30 level is heavily shorted with $175.50 million in positions, while $223 sees $46 million held in long positions.
Current Price Momentum and Technical Analysis
Technical analysis suggests SOL is forming a bearish inverted cup and handle pattern on the daily timeframe. If the neckline breaks with a close below $220, SOL could potentially drop by 14% to $190 support level.
Long-term investors are anticipating possible gains despite the current market volatility. The situation presents both risks and opportunities for short-term trading strategies.
