Solana’s Price Faces Downward Pressure as Bullish Volume Fades
Solana (SOL) has recently experienced a bounce from the low value area, but this upward movement is losing momentum due to declining bullish volume. If the current support fails to hold, the price may plummet towards the lower support at $117. This development is a concern for investors, as it indicates a potential deeper pullback.
The SOL price has stagnated near the value range low, with weak recovery momentum. The decreasing bullish volume reduces the chances of a reversal, and the bearish structure maintains the focus on the downward move towards the $117 support. The initial bullish reaction sparked optimism that a near-term bottom was forming, but the lack of follow-through and decreasing volume suggest that buyers are struggling to maintain control.
Key Technical Points and Volume Analysis
The recovery from the bottom of the value area is losing momentum, and the bearish structure keeps downside targets active towards the $117 support. The volume profile is trending downwards, with no clear influx of bullish activity to support the upswing. This bearish volume environment increases the likelihood that Solana will be unable to hold current support levels and will trend lower in search of liquidity.
SOLUSDT (4H) chart, source: TradingView
Falling Bullish Volume: A Warning Signal
Volume is a crucial indicator in assessing the strength behind a price jump. Healthy reversals are typically supported by increasing volume, showing that buyers are aggressively stepping in and absorbing selling pressure. In the case of Solana, the volume has decreased, indicating weak demand and a potential trend lower. This bearish volume environment increases the likelihood that Solana will be unable to hold current support levels and will trend lower in search of liquidity.
Lower Liquidity and Downside Targets
In range environments, price often pivots towards idle liquidity. The next major downside target is lower support in the $117 area, which has not been retested recently and remains a critical structural demand zone. This level is significant because it represents the lower limit of the trading range, and buyers are likely to seek stronger defense. If Solana breaks out of its current support zones, the market will naturally focus on $117 as the next liquidity and demand area.
Confirmation of a Collapse and Future Price Development
A collapse would be confirmed if Solana continues to close weakly below the low of the value range and fails to recapture it. Additional bearish follow-on candles, especially on increasing volume, would increase confidence that sellers are pushing for support at the range low. The most important thing to monitor is whether buyers can recapture the value with strength. Without this, Solana remains vulnerable to a further decline.
For more information and the latest updates on Solana’s price, visit https://crypto.news/solana-price-risks-deeper-pullback-bullish-volume-weak/
