Key Takeaways
Will Solana bulls defend the $150 psychological support level?
They have successfully kept the bears at bay at the $150 level over the past week, but a price dip to $140 is imminent.
What price trend would follow this expected dip?
It would depend on Bitcoin’s ability to stay above $98k-$100k, but a bounce from $140 is possible.
Solana [SOL] has suffered a nearly 10% drawdown from the week’s high at $171.9, and was trading at $155 at the time of writing.
Neither its edge in the stablecoin market nor the high monthly revenue Solana generated has been enough to start a long-term uptrend.
Source: SOL/USDT on TradingView
On the 1-day chart, SOL had broken down from the symmetrical triangle pattern and lost control of the $180 support zone in the first week of November. Since then, the price has made a series of lower highs and lower lows, characteristic of a downtrend.
The OBV indicator also trended downward. This indicates that the decline was driven by sustained selling pressure rather than a temporary liquidity hunt.
The MFI agreed with the seller dominance and remained below 50, showing that the momentum was bearish, and selling pressure was prevalent.
The lower timeframes signaled a potential dip to $140 for SOL
Source: SOL/USDT on TradingView
On the 1-hour chart, the $145-$155 demand zone has been important since the 4th of November. At the time of writing, the same support zone was being retested.
With Bitcoin [BTC] also hovering at the $102k mark at the time of writing, it was likely that this demand zone would be lost if the wider market experienced another sell-off.
The technical indicators did not promise a bullish reversal. The OBV continued to decline, showing weak buying pressure even when the price bounced. The MFI was below 20, indicating oversold conditions.
Source: CoinGlass
The 1-month look-back period heatmap showed that a deeper price correction was highly likely. The $144 and $140 were key magnetic zones and relatively close to the price.
They would likely drag SOL prices lower before a bounce can occur. Overall, the short-term Solana price prediction is bearish.
A dip to $140 is likely in the coming days, and with liquidity extending to $120, traders should brace for continued bearish pressure.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
