- Solana remains under selling pressure as weak spot demand and bearish technical indicators increase the risk of a drop toward the $70 support level.
- Buyers must reclaim key resistance above $75 to improve the short-term outlook.
Solana (SOL) remains under pressure after falling below an important support level, with technical indicators suggesting that sellers still have the upper hand. Weak spot demand, continued capital outflows, and bearish chart signals have increased the chances of another move lower if buyers fail to regain control.
While a recovery is still possible, SOL must overcome several resistance levels before the short-term outlook improves.
Solana Price Slides Below Key Support
Solana traded around $72.55 after losing nearly 1.5% over the past 24 hours. The decline extends the correction from July’s high near $82.50, where sellers began rejecting every recovery attempt.
SOL has now dropped below the middle Bollinger Band, which previously acted as support. That level has now turned into resistance, making it harder for buyers to stage a sustained rebound.
Although the price briefly dipped below $71.50 before recovering, the bounce was limited. This suggests buyers are still defending the area but lack enough strength to reverse the current trend.
At the same time, the Awesome Oscillator remains below zero, showing that bearish momentum continues to build.
Weak Spot Demand Raises Downside Risk
One of the biggest concerns for Solana is the lack of spot buying.
Recent market data shows that capital continues to leave SOL, with the Chaikin Money Flow indicator remaining in negative territory. This points to stronger selling pressure than buying demand.
Without healthy spot market participation, price rebounds often depend on leveraged traders. Those recoveries tend to be less reliable because they can reverse quickly if selling pressure returns.
Cooling activity across the Solana ecosystem has also reduced demand. Lower decentralized exchange activity and weaker network fee generation mean fewer users are purchasing SOL for on-chain transactions.
Technical Indicators Still Favor Sellers
The four-hour chart continues to paint a bearish picture.
Solana remains below its 20, 50, 100, and 200-period moving averages, showing that the downtrend remains intact across multiple timeframes.
The first resistance sits near $73, followed by stronger barriers around $74 and $75. A move above these levels would improve market sentiment and could open the door for another test of $76.80.
However, failure to reclaim those resistance zones could send SOL back toward $71.50. If that support breaks, the next major target sits near $70, with additional support around $67.50.
Liquidation Levels Could Trigger Sharp Moves
Market data also shows heavy liquidation clusters both above and below the current price.
Large groups of short positions are concentrated between $73.50 and $74.50. If SOL climbs into this zone, forced short liquidations could accelerate a temporary recovery.
On the downside, liquidity remains concentrated near $71.50 and $70. If sellers push the price below current support, those levels could become the next downside targets.
Governance Proposal Could Support SOL Later
Despite the weak technical outlook, Solana could receive a longer-term boost from proposed governance changes.
A proposal currently under review aims to increase the network’s token disinflation rate while significantly raising the number of SOL tokens burned each day. If approved, the changes would reduce future token issuance and lower overall supply over time.
However, the proposal still requires community approval before any changes take effect, meaning it has not yet influenced the current market trend.
Solana Price Outlook
Solana remains under pressure as weak buying demand and continued selling activity weigh on price action. The area around $75 remains the key resistance that buyers need to reclaim to improve the short-term outlook.
Until then, SOL risks another decline toward $70, especially if support around $71.50 fails to hold. A stronger recovery will likely require renewed spot buying alongside improving market sentiment.
ALSO READ: Solana Records All-Time High Monthly Transactions Following Record July Activity
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