Solana (SOL) Price Analysis

Solana (SOL) price plummeted over 20%, trading at $141.93, despite being announced as part of a strategic reserve. This sharp drop raises questions about the sustainability of the bullish outlook following this news.

After reaching a daily high of $179.53, Solana fell to a low of $140.21, erasing gains from prior sessions. Key support levels around $155 failed, triggering a stronger decline.

Historically, this price range acted as resistance in both August and September, making it critical. Despite the drop, trading volume surged, indicating strong market activity.

Technical indicators show mixed signals: the Bollinger Bands suggest heightened volatility, while moving averages indicate downward pressure. If Solana recovers above $155, bullish momentum could return. However, failing to hold current levels may lead to further declines toward $128. Investors remain cautious, balancing Solana’s long-term potential with short-term price fluctuations. The coming days will determine if this drop is a temporary setback or a trend reversal.

Solana Price’s Strong Liquidity Zones

Further analysis reveals that Solana is encountering key liquidity zones, with strong resistance near $183 and $165. The price action suggests these levels are critical for determining SOL’s next moves, as large liquidity clusters influence market movement.

Recently, SOL reached a high of $183.32 before selling pressure pushed it down. The price briefly tested $165.69 but failed to maintain that level, leading to a drop toward $155.

The heatmap indicated high liquidity concentration between $183.5 and $183.7, serving as a strong barrier to upward movement. On the downside, liquidity is accumulating around $150 and $155, signaling buyer interest.

If SOL can maintain support above $155, it may attempt to reclaim $165. Conversely, failing to hold could drive prices lower, potentially testing the $140 level. Overall, SOL’s price movement hinges on overcoming resistance at $165 or breaking past $183. A decisive move beyond these levels will dictate whether the current trend continues or reverses.

SOL Crowd vs Smart Money Sentiment

Solana’s price is exhibiting a split in market sentiment. While the general crowd remains bullish, institutional or “smart money” investors are showing a bearish outlook. This divergence indicates varied expectations for SOL’s future price movement.

The crowd sentiment gauge stands at 1.14, indicating retail traders are optimistic about SOL’s price potential. This sentiment often propels short-term rallies, as increased buying interest from retail traders supports price gains. However, this level of enthusiasm may not sustain a strong uptrend.

Meanwhile, the smart money sentiment gauge reads -1.65, showing that institutional investors and experienced traders are more cautious. This negative sentiment suggests larger investors are anticipating price weakness or seeking better buying opportunities.

Historically, when smart money turns bearish while retail sentiment remains bullish, it can signal impending price corrections. For SOL, this sentiment contrast introduces uncertainty. If retail momentum prevails, SOL could rise higher. However, if institutional investors maintain control, the market may experience increased selling pressure before any sustainable recovery.