Solana (SOL), one of the most prominent altcoins in the crypto market, is under increasing pressure as its price continues to slide. Over the past two weeks, SOL has dropped more than 20% from its 30-day high of $187.71 recorded on May 23. This decline has raised concerns among traders and investors as the token tests a critical support level near $140.
Failure at Key Resistance Triggers Sell-Off
The current sell-off began after SOL failed to break above a well-established supply zone near the $180 mark. This level has historically acted as strong resistance, coinciding with a downward-sloping trendline formed from multiple lower highs — observed on January 18, May 14, May 23, and May 27. The inability to breach this resistance triggered a wave of profit-taking and increased bearish sentiment across the market.
Technical Indicators Suggest Further Weakness
From a technical standpoint, the outlook for SOL remains bearish. The Relative Strength Index (RSI) has fallen to 37 — firmly in bearish territory — suggesting that selling momentum is increasing. Compared to the previous dip toward the $140 region in early May, current indicators suggest stronger downward pressure.
Additionally, the Moving Average Convergence Divergence (MACD) indicator shows a bearish crossover. The MACD line has moved below the signal line and into negative territory, with the histogram printing increasingly larger red bars — a sign that bearish momentum may accelerate in the near term.
Derivatives Data Reflects Bearish Sentiment
Derivatives market data adds further weight to the negative outlook. According to Coinglass, Open Interest (OI) in Solana futures has dropped 4.61% in the last 24 hours, bringing total OI to $6.46 billion. This decline in OI signals that traders are closing positions and stepping back from the market.
More notably, liquidations tell a clearer story: long positions have seen liquidations totaling nearly $47 million, while short liquidations were only $3.5 million — a stark imbalance that indicates bulls are being forced out of the market.
The long/short ratio has declined to 0.9429, showing that bearish positions now outnumber bullish ones. Moreover, the funding rate for perpetual futures has turned negative at -0.0083%, meaning short sellers are now paying to keep their positions open — a classic indicator of bearish dominance.
Key Support Under Threat
The $140 zone is currently acting as a critical psychological and technical support for Solana. A decisive break below this level could open the door for further declines, possibly toward the next major support areas around $125 or even $110.
If bulls are to regain control, SOL would first need to hold above $140 and initiate a strong bounce — ideally reclaiming $155–$160 with high volume. However, with macro uncertainty, profit-taking, and risk-off sentiment in the broader crypto space, that scenario currently appears less likely.
Conclusion
Solana is at a crossroads. While the $140 level is holding — for now — the growing bearish momentum and weak market structure suggest more downside could be ahead. Traders should keep an eye on support levels, volume, and macro trends, and proceed with caution until SOL shows clearer signs of reversal.
