The Solana token is under pressure as its price has dropped below the important $160 level, driven by several factors, including declining network activity and increased selling pressure.
Current SOL Price Situation
The Solana token price has dropped below $160 for the first time since November 2024, remaining within a steep bearish channel. This is coupled with a decline in DEX activity for the fifth consecutive week.
Reasons for the Bearish Trend
The main reason for the bearish trend is believed to be the large sale of tokens on Binance. Additionally, Wintermute's withdrawal of $38 million in SOL from Binance has contributed to the decline, especially with the anticipation of unlocking $2 billion worth of tokens.
Forecasts and Analysis
Technical indicators suggest a possible further drop below $150. The Solana chart shows a critical support break at $158, and the Chaikin Money Flow indicator has fallen below 0. The price might continue to fall to the support zone of $138-$139 if it fails to hold $150.
Solana faces significant challenges amidst the current bearish trend and declining network activity. Price movements in the coming weeks will be crucial if the token is to regain lost ground.
