Solana’s price recently faced challenges in maintaining $175 as a support level, which halted its upward momentum after weeks of gains. This loss in bullish momentum has put SOL under pressure, making it vulnerable to a potential drawdown. 

As traders assess the outlook, Solana’s price action is becoming a key focus for market participants, particularly after recent setbacks.

Solana Is Losing Its Bullishness

In the past 24 hours, traders who placed long positions on Solana experienced substantial liquidations, signaling a shift in market sentiment. The recent drop in SOL’s price triggered about $25 million in long liquidations, the largest single-day liquidation for Solana in three months.

The scale of these liquidations may have shaken confidence among bulls, potentially leading some investors to step back. However, while the market appears cautious, the extent of long liquidations also highlights the volatility in Solana’s price action.

Read more: Solana vs. Ethereum: An Ultimate Comparison

The macro momentum for Solana is showing signs of slowing, with technical indicators like the Moving Average Convergence Divergence (MACD) pointing to a potential shift. The MACD histogram bars are shrinking, signaling a decrease in bullish momentum and hinting at a possible downturn.

The receding MACD bars suggest that Solana’s recent uptrend might be losing steam, with bearish sentiment building in the background. This transition in momentum could indicate that Solana is entering a consolidation phase or, worse, a more significant retracement. 

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Author: Aaryamann Shrivastava