• Solana had a bearish structure and momentum on the 1-day timeframe
• Sustained buying pressure would be necessary for a recovery, but it hasn’t arrived yet

Solana [SOL] has been in a retracement phase over the last six weeks after facing rejection above the $260-level. There seemed to be strong social volume around the asset, but decreasing active addresses have been a concern. In fact, Pumpfun deposited $21 million worth of SOL on the centralized exchange Kraken, sparking fears of short-term sell pressure.

Its MVRV ratio analysis underlined a potential buying opportunity. At the same time, the price was trading just above a demand zone that acted as a stern resistance in mid-2024.

Solana remains bearish on the daily timeframe

The market-wide slump in recent weeks after the November pump has affected SOL negatively. With Bitcoin [BTC] dropping to $89.2k on Monday, 13 January, it was a wonder that Solana bulls held on to the $180-support.

The OBV has been on a steady decline since November, despite the buyers’ resolute defense. This meant that sooner or later the demand zone would be overrun unless sentiment across the market changes bullishly.

The 20 and 50-period moving averages helped highlight potential turning points. At press time, they reflected bearish momentum, and the slower moving average served as a short-term resistance.

The price action also told the same story. In order to f

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Author: Akashnath S