Solana, a popular altcoin known for its fast and affordable transactions, is facing challenging times in the market. Despite surpassing Ethereum in some metrics, Solana's price has declined significantly, falling below $154. The current weakness is attributed to the negative market sentiment, which has triggered a selling spree.

Technical Analysis

The SOL coin's price drop has led to a break below the 20-day Exponential Moving Average (EMA), a bearish signal indicating rapid downward movements. The Moving Average Convergence Divergence (MACD) data also confirms increasing selling pressure, with bears taking control. The loss of $162 as a support level further reinforces this trend.

Futures Trading Insights

Futures trading data reveals a decline in open positions for SOL coin, with a 15% decrease since the beginning of June. This indicates a lack of investor confidence, leading to a decrease in open positions and a reluctance to open new ones. On-chain metrics also show weakened market sentiment, with investor sentiment dropping below zero.

Price Prediction

If the bearish trend continues, SOL coin may experience rapid declines, potentially testing levels as low as $135, $129, and even $88 in extreme selling scenarios. However, if the price reclaims $162 and refocuses on resistance levels, a bullish scenario may emerge, targeting $188 and $205.

Conclusion

Solana's current price struggles are a reflection of the broader market sentiment. While the altcoin has potential, its price may continue to fluctuate based on market conditions. Investors should exercise caution and monitor market trends to determine the best course of action.