Solana [SOL] Faces Critical Sell Pressure Below $150 Amidst Consolidation

• Solana (SOL) has been consolidating just below its 200-day Moving Average, facing a significant sell-off pressure.
• Currently, whales have placed substantial sell orders amounting to nearly $3.5 million for SOL at the crucial $150 level.
• This altcoin has experienced a prolonged bearish trend, amplified by the recent withdrawal of U.S. spot SOL ETF filings, making investors cautious.

Discover the latest developments in Solana’s market performance and understand what could be next for this pivotal altcoin.

SOL Continues to Face Stiff Resistance Below 200-day SMA

Solana’s (SOL) price has been trading in a narrow range below the critical $150 threshold, highlighted by the 200-day Simple Moving Average (SMA). This level has emerged as a substantial supply zone due to its alignment with a significant daily breaker block. Over the past week, the altcoin has struggled to breach this resistance, resulting in consistent selling pressure, especially from long-term holders looking to lock in profits.

Market Indicators Show Persistent Sell-Side Pressure

Examining SOL’s performance through various market indicators reveals a bearish sentiment. The Relative Strength Index (RSI) has portrayed a flat demand, substantiating the sellers’ dominant position. Additionally, the Cumulative Volume Delta (CVD) has declined throughout August, indicating a trend of overwhelming sell-side activity, making it favorable for short sellers. Despite this, Open Interest (OI) rates for SOL have remained flat, pointing to a stagnation in demand within derivatives markets. With a neutral market sentiment, SOL’s price direction remains uncertain absent a significant upward move in Bitcoin (BTC).

Whale Activity Underpins Key Price Levels

Recent analyses by COINOTAG and Coinglass have shed light on substantial whale activity surrounding SOL’s price. In the past 24 hours, sell orders totaling approximately $3.5 million have been placed at the $150 level, fortifying it as a formidable resistance point. An additional sell order at $152 further solidifies the 200-day SMA as a critical supply zone. Conversely, on the support side, a buy order of $1 million has been set between $139 and $140, suggesting a potential price range constraint for SOL in the near term.

Conclusion

In summary, Solana (SOL) faces significant resistance at the $150 level, with consistent sell-side pressures and flat demand in the derivatives market. Despite the current market challenges, the price action of SOL remains in a critical zone, influenced heavily by whale activity and broader market sentiment, particularly movements in Bitcoin (BTC). Investors should monitor these key levels and market indicators closely to gauge potential short-term trajectories.

Source