Solana (SOL) is under a lot of downward pressure, which makes traders and buyers wonder whether the bitcoin will fall below the important $100 mark this month.
Closing many daily candles below the 200-day Exponential Moving Average (EMA), the altcoin is a quite important technical indication. This matches the quite challenging finale of August. Since Solana has dropped below this level for the first time since September 2023, prices may crash in the next weeks.
At the end of August, Solana recorded second-worst weekly performance of 2024 with a loss of 19.14%, This follows a more significant weekly loss of the year in July, when SOL dropped 25.19%, The recent price action makes traders and buyers cautious since SOL is struggling to find significant support levels to prevent its decline.
Solana’s negative spot net flow of $500 million in August indicated the great pressure to sell. Prices are now mostly moved in the futures market since the spot market is not performing as expected.
Especially, the demand in Solana futures contracts has increased by 20%, while the price of the altcoin declined by 14% since it sank below $150. This increase in OI is unmistakable evidence of active short-selling, in which traders are betting SOL’s value would drop even more while the market is declining.
Solana’s Declining Metrics Signal Growing Bearish Sentiment
Solana’s financing rate has dropped negative, landing at -0.001, lowest point since 2024. People’s pessimism is thus even more pronounced. Having been in place for almost a week, this negative financing rate shows that prospective traders are becoming even less enthusiastic about SOL’s future.
Furthermore less is happening on the Solana blockchain. Solana DEX volume for last week at $7.7 billion is lowest volume on the distributed exchange (DEX) six months had witnessed.
This is a major difference from previous this year, when daily DEX activity was 50% bigger than Ethereum’s, often surpassing $3 billion in 24-hour trading volume. Less enthusiasm about memecoins and overall market uncertainty helps to explain some of this drop in activity, so lowering SOL’s price even more.
Solana is about $127, hence experts consider her to be in a quite strong motivating level. Six months following April 2024 SOL has fallen to $120. It finished the day above $127 each time, suggesting that this level indicates the bottom of an accumulation zone.
But now SOL not only falls below $127 but also loses support from the 200-day EMA. This is indicative of a bear market since September 2023 has not occurred.
If Solana wants not to be moved, she has to save her money over $127. Another major degree of support might also be broken at $110. Bears could be able to rebound in strength should prices keep rising. Should the trend continue down, Solana would question the demand zone between $98 and $104, which is far lower than the quite important $100 mark.
Given Solana works in a demanding sector, the following two weeks will be quite crucial for him. Technical and market indicators show that the coin is currently losing value. Should Bitcoin do well in Q4, though, it might enable SOL remain above $100.
Traders should focus especially on the important support points of $110 and $127. Should these marks be broken, prices may drop still more. People want it in a price range between $98 and $104.
Given Solana works in a demanding field, he will find the two next weeks rather important. Technical and market data shows the Bitcoin is losing value right now.
If Bitcoin does really well in Q4, however, it might allow SOL to maintain more above $100. Traders should pay great attention to the key support points $127 and $110. Dealing with these levels will enable greater price reductions. It might find its way in the demand zone between $98 and $104.
