The persisting descent of Solana explained
A crucial support level to watch for Solana (SOL) is between $173 and $175, which represents a 38.2% Fibonacci retracement level. Recent technical analysis and market data indicate several bearish signals for the cryptocurrency, highlighting a potential downward pressure on its price.
The Spent Output Profit Ratio (SOPR) data was not directly found in the search results, but related netflow and liquidation signals suggest bearish momentum. For instance, on August 6, 2025, Solana’s net outflow was around -$9.81 million, indicating bearish selling pressure on the token.
Liquidation activity has also increased, with short liquidation pockets just overhead around $185–$190. The failure to hold above $185 or $188 resistance levels suggests that attempts to defend that zone have failed, indicating increased liquidation activity on long positions and growing bearish momentum.
Solana is trapped below critical resistance around $170–$175 and $185–$188. The formation of a bearish head-and-shoulders pattern and breakdown below the 20-day Simple Moving Average (SMA-20) both indicate weakening short-term momentum. A failure to break above $170–$175 support could lead to retesting and possibly breaking below $160 support, which would be significant bearish confirmation.
The Bull-Bear Power Index or similar momentum indicators were not explicitly reported in search results. However, the declining volume and failure to sustain rallies above key levels suggest bearish market pressure. The Relative Strength Index (RSI) and Directional Movement Index (DMI) reflect a strong trend forming but with neutral to bearish offsets at current price.
Overall, combined analysis points to a bearish outlook for Solana, characterized by persistent resistance at $170–$175 and $185–$188 levels, increasing liquidation pressure near these levels indicating weak buyer conviction, potential for price to re-test and possibly break below $160 support zone, and technical patterns supporting short-term downside risk.
Traders and analysts are cautioning that sustained close above $170–$175 is needed to reverse this bearish narrative and validate any bullish momentum. Without such a breakout, the likelihood of further declines increases.
In the past week, Solana's SOPR (Spent Output Profit Ratio) has moved from 1.04 to near 1.00, indicating that current selling wallets are barely making any profits, which is often a sign of a loss of confidence in the market. The price of Solana has fallen by 6% this week, and its price rally took a break after a surge of over 22% last month.
To confirm a trend reversal, Solana will have to break through the resistances at $186 and $191 in turn. If Solana breaks below $173, it could open the door to a deeper correction. Without a new wave of enthusiastic buying, prices could remain stagnant or continue to erode before a potential recovery.
Smart money could push the price up after forcing investors to capitulate. Over the past 7 days, short positions on Solana totaled $1.28 billion, compared to $924 million for long positions. Many shorts are at risk of being liquidated, which could potentially trigger a short squeeze and push the price higher.
The current trading price of Solana is around $180. The CMF in 4 hours being negative could indicate that the selling pressure is about to run out of steam. The Bull-Bear Power Index is in continuous decline, indicating a weakening of bullish momentum, and the weakening bullish momentum means that buybacks are becoming less aggressive, limiting the chances of a quick rebound.
At the 'crypto academy', understanding the role of technology in market trends is essential, especially in analyzing Solana's current situation. The persistently high short positions on Solana, combined with the lackluster performance of the Bull-Bear Power Index, suggest that technology-driven selling pressure is a significant factor in Solana's bearish outlook.
