Flow

bullish

Solana

<ul class="wp-block-list">
 <li>Solana faces strong resistance with high liquidation risk at $246</li>
 <li>Chaikin Money Flow indicates increasing selling pressure</li>
 <li>Technical analysis suggests potential drop to $222-$200 range</li>
</ul>
<a href="https://thenewscrypto.com/?s=Solana" target="_blank" rel="noopener noreferrer nofollow">Solana</a> (SOL) has encountered significant headwinds in its attempt to reach new historic highs, with the price consolidating around $238. A comprehensive analysis of multiple technical indicators suggests that the cryptocurrency might face additional downward pressure in the near term.
The liquidation heatmap, a sophisticated tool for understanding potential price movements, reveals critical price levels that could influence SOL’s trajectory. This indicator currently shows a high concentration of liquidity at two key levels: resistance at $246 and support at $225.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="538" src="https://thenewscrypto.com/wp-content/uploads/2024/11/image-236-1024x538.png" alt="" class="wp-image-116019" srcset="https://thenewscrypto.com/wp-content/uploads/2024/11/image-236-1024x538.png 1024w, https://thenewscrypto.com/wp-content/uploads/2024/11/image-236-300x158.png 300w, https://thenewscrypto.com/wp-content/uploads/2024/11/image-236-768x404.png 768w, https://thenewscrypto.com/wp-content/uploads/2024/11/image-236.png 1536w" sizes="auto, (max-width: 1024px) 100vw, 1024px">
 <figcaption class="wp-element-caption">
 Source:&nbsp;<a href="https://coinglass.com/" target="_blank" rel="noopener noreferrer nofollow">Coinglass</a>
 </figcaption>
</figure>
The heatmap’s color gradient, shifting from purple to yellow in these regions, signals significant order book activity. With current trading volumes remaining subdued, these levels become particularly significant as potential price targets.
<h2 class="wp-block-heading" id="h-solana-cmf-enters-downward-trend">Solana CMF enters downward trend</h2>
Adding to the bearish outlook, the Chaikin Money Flow (CMF) metric has entered a concerning downward trend. This technical indicator, which measures the flow of capital in and out of an asset, suggests that selling pressure is mounting. The declining CMF reading typically precedes price decreases as it reflects diminishing buying interest and increasing capital outflows from the market.
Perhaps most tellingly, Solana’s Balance of Power (BoP) indicator has moved into negative territory on the daily timeframe. This transition is particularly significant because the BoP directly compares bullish and bearish market forces. Its current negative reading suggests that sellers have gained the upper hand in the ongoing price battle.
Looking at potential price targets, the Fibonacci retracement levels provide a framework for possible support zones. Should the current bearish pressure persist, <a href="https://thenewscrypto.com/?s=Sol" target="_blank" rel="noopener noreferrer nofollow">SOL </a>could test the 23.6% retracement level near $222.
In a more severe scenario, the price might extend its decline toward the psychologically important $200 level. However, a revival in buying interest could still invalidate this bearish outlook, potentially pushing SOL toward $265.
The convergence of these technical signals suggests that investors should carefully monitor these key levels, particularly the crucial $225 support, as they may determine SOL’s next significant move.

Technical Signals Point to Solana’s Struggle Near ATH as Bears Take Control

Table of Contents

TheNewsCrypto

Other articles published on Nov 29, 2024

Experts Warned: “Bitcoin is Very Close to $100,000, But…”

GTA Online rolls out November update with big deals and bonuses

Binance Will Close Futures Trading for XEM, ORBS, and LOOM on December 9

STEPN Apps Community broke TWO GUINNESS WORLD RECORDS™

Ethereum user tricks AI agent into sending $47,000 ETH prize

Why is the Ripple (XRP) Price Up Today?

Join our free newsletter for daily crypto updates!