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Solana (SOL) is experiencing significant bearish pressure as whale sell-offs intensify and liquidation events surge.
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Recent data indicates that the market sentiment has shifted, marked by a sharp decline in SOL’s value amidst heavy trading activity from major holders.
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In an article from COINOTAG, analysts noted, “The recent outflows signify a considerable downturn in market confidence for SOL.”
Solana (SOL) faces intense bearish pressure as whale sell-offs surge, impacting market confidence and driving prices lower with technical breakdowns.
Has Solana lost bullish momentum?
Solana has experienced a pivotal shift in market dynamics as it breaks below its ascending trendline due to sustained resistance near the $179 mark. This rejection signals a potential downturn, opening the possibility for a decline towards the crucial support levels between $140 and $145. Furthermore, the Stochastic RSI analysis indicates an oversold condition, suggesting that upward momentum is weakening. Without robust bullish triggers, the market may very likely explore new lows shortly.
Source: TradingView
Deeper selling pressure ahead?
The current market landscape reveals further troubling signs. According to CoinGlass, a staggering $273.26 million in outflows was recorded on May 30, against inflows of only $241.56 million. This net outflow highlights a bearish trend among major market participants, suggesting that large holders are opting to liquidate their positions rather than accumulate additional SOL. The patterns of these outflows underline the ongoing tension between supply and demand, accentuating the potential for deeper price corrections in the near term if the trend continues.
Source: CoinGlass
Will negative funding drag prices further?
Market indicators reveal that the Open Interest-Weighted Funding Rate has shifted into negative territory at -0.0015%, underscoring a growing demand for short positions. This trend indicates market participants are increasingly hedging against further declines, reflecting a pessimistic sentiment that has overtaken the derivatives markets. With traders expecting SOL to test lower prices, the balance of power is tilting towards bearishness, reinforcing concerns that additional downward pressure is imminent unless market conditions change drastically.
Source: CoinGlass
Have long traders capitulated?
According to liquidation data from May 30, long positions faced significant pressure, totaling approximately $18.99 million in liquidations compared to a mere $566.7K for short positions. Bybit was particularly affected, with losses surpassing $10.9 million in long positions, indicating that many leveraged traders were caught unprepared by the recent market shifts. This stark disparity highlights the vulnerability of long traders and suggests a grim outlook for SOL’s immediate future.
Source: CoinGlass
Conclusion
The convergence of technical breakdowns, bearish sentiment, negative funding, and aggressive sell-offs has placed Solana at a critical juncture. The support zone between $140 and $145 will be pivotal in determining whether bulls can mount a defense or if bearish forces will dominate the market, leading to further price declines. Current indicators reveal that if these conditions persist, a breach below this support level could catalyze accelerated downside momentum and reinforce the ongoing bearish trend for SOL.
