Solana Price Plunges 12.68% Below $150 as Bear Traders Seize Control

On Monday, August 13, Solana price experienced a sharp decline, slipping below the critical $150 support level. This marked a 12.68% drop from its peak of $163 just four days earlier. Market data suggests that bearish traders have taken advantage of the situation, mounting $195 million in short positions. With growing concerns over Solana’s near-term prospects, traders and investors are now closely watching whether the cryptocurrency can hold its next support level at $140.

Solana Price Loses $150 Support Amid Sluggish Market Demand

The Solana price saw a notable rally earlier in August, driven by bullish news such as the approval of Solana ETFs in Brazil. This optimistic sentiment propelled the price to a peak of $163 on August 9, representing a 49.32% increase from the start of the month. However, as the price approached the $165 resistance level, short-term traders began to take profits, leading to a cooling of market demand.

By August 13, Solana’s price had slipped below $150, representing a 12.68% correction in just four days. This decline has led to concerns that the psychological support level at $150, once a stronghold for bullish sentiment, has now been breached. Analysts are warning that this shift in market dynamics could indicate a more prolonged bearish phase.

According to a report from Coinglass, “the recent drop in Solana’s price has triggered a wave of profit-taking among short-term traders, contributing to the weakening market demand.” The decrease in demand has left Solana vulnerable to further declines, with the next key support level identified at $140.

Bearish Sentiment Grows as $195M in Short Positions Mount

The breach of the $150 support level on August 13 has provided an opening for bearish traders. Data from Coinglass’s Liquidation Map shows that bear traders have mounted $195 million in short positions against Solana. In contrast, long positions now stand at $165 million, indicating that the market sentiment has shifted towards the downside.

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This significant imbalance between short and long positions suggests that bearish traders are currently in control of the market. If Solana’s price continues to struggle below $150, this could embolden bear traders further, potentially pushing the price even lower.

James Carter, a cryptocurrency analyst at TradingView, noted, “The current landscape suggests that many long traders who benefited from the recent rally have now exited their positions, making way for short sellers to dominate.” As long as the bearish sentiment persists, Solana could face continued pressure, with $140 emerging as a crucial support level that bulls must defend.

Solana Price Forecast: Critical $140 Support Level Under Threat

The recent market movements suggest a challenging period ahead for Solana. The loss of the $150 support level and the mounting short positions point to a bearish outlook in the immediate future. Technical analysis of the SOL/USD chart shows that the next key support level lies at $140. If Solana’s price fails to hold above this level, it could lead to a steeper decline toward $136.82, the next major support level.

On the upside, resistance is now expected around $151.96, but breaking through this level may prove difficult without a significant shift in market sentiment. According to market analyst Robert Hastings, “For Solana to reverse its current downtrend, we would need to see sustained buying pressure that pushes the price back above $150, ideally closer to $160.”

As the market continues to digest the recent developments, all eyes will be on the $140 support level. Should Solana’s price fall below this threshold, it could trigger a new wave of selling, leading to further losses for investors.

Final Remarks on Solana Price Trend

Solana’s recent price drop below $150 has raised concerns among traders and investors alike. With a 12.68% decline over just four days and bearish traders taking control with $195 million in short positions, the outlook for Solana appears uncertain. The $140 support level will be crucial in determining the cryptocurrency’s next move. If this support fails, Solana could face further downside pressure, potentially testing lower levels in the coming days. As the market remains volatile, traders are advised to closely monitor key price levels and market sentiment before making any significant moves. Keep following TheBITJournal and keep an eye on Solana price trends.