Solana (SOL) Price Falls Below Breakout Level as Bears Reappear

Solana coin (SOL) was trading in a horizontal channel between April 13 and May 15. As buying pressure gained momentum, the bulls began pushing the price above the upper line of this channel, and Solana broke through this level on May 16.

The increase in demand for the altcoin pushed its price to $187 on May 20, where it peaked. However, it has since declined and fell below the $162 breakout level.

The price of Solana continues to fall

At the time of writing this article, it is trading Solana (SOL) at $154. It is down 5% from the breakout level. The altcoin is currently trading below the 20-day exponential moving average (EMA), which tracks the average price of SOL over the past 20 days.

When an asset's price falls below this key moving average, it means the asset is trading lower than its average price over the last 20 days. This indicates a decrease in buying pressure andIncreased currency sales.

Solana’s MACD readings confirm increased selling pressure among market participants. The currency's MACD line (blue) is currently below the signal (orange) and heading towards the zero line at the time of writing.

This indicator determines the price strength of an asset, its trend, and changes in momentum. When the MACD line crosses below the signal line, it is considered a bearish signal. This indicates that the bears have taken control and will put downward pressure on asset prices.

Traders often interpret it as a sign To exit the sale and open buy transactions.

SOL Price Prediction: Futures traders close their positions

The bias is no different among traders in the currency futures market. Since the beginning of June, open interest on Solana futures has been trending downward. At $2.2 billion, it has since fallen 15%. An asset's futures open interest tracks the total number of outstanding futures contracts or positions that have not been closed or settled.

When it decreases in this way, it indicates an increase in the number of traders closing their positions without opening new ones.

It is often considered an indicator of a shift from bullish to bearish sentiment.

SOL's weighted negative sentiment confirms this change. At the time of writing, it is below zero at -0.32. This on-chain metric tracks overall market sentiment regarding the asset. At this value, SOL's weighted sentiment indicates more negative signals than positive signals surrounding it.

If this bias against the coin persists and selling pressure builds as a result, its value could drop to $135.

But if speculators impose their logic and buying pressure increases, SOL price could rise towards $17.03.