Solana’s price has faced tremendous upward pressure in the past few days, which has dragged the levels close to the psychological barrier at $200. The broader market sentiments do not favour the bulls, due to which the prices are struggling to find stability. Moreover, the token has been failing to reclaim key resistance levels, which has kept the downside momentum dominant. Hence, a sustained failure to hold above the immediate support zone could expose the SOL price to deeper corrections in the near term.
The Sol Strategy Impact
A major factor weighing on sentiment is the sudden collapse of Sol Strategies, one of the largest Solana-focused treasury companies. With 434,511 SOL in its holdings, the firm’s turmoil has raised fresh concerns about ecosystem stability and its impact on SOL’s future price action. This week, Sol Strategies’ valuation plunged from $19 to $7, marking a 63% weekly dump.
The crash comes at a time when investor confidence in Solana’s ecosystem is already fragile. More concerning, the firm’s CEO exited unexpectedly, adding further uncertainty about the company’s direction. As one of the largest holders of SOL, instability at Sol Strategies raises fears of potential liquidations or treasury sell-offs, which could trigger additional selling pressure in the market.
Why does this matter for the SOL price rally?
Large strategy and treasury firms play a vital role in supporting ecosystem confidence. If their financial health deteriorates, it often sparks speculation that they may need to offload assets to cover losses or restructure. In Solana’s case, this risk directly translates into fears of increased SOL supply hitting the market, which weighs heavily on price action. Until these companies stabilise or regain investor trust, SOL could continue facing headwinds despite strong fundamentals in its broader network activity.
What’s Next for Solana Price?
The Solana price has been maintaining a strong upswing since the August rebound. However, the current pullback has been more extreme, which may leave no room for the bulls to reclaim their dominance. The technicals are slowly switching to bearish, which is not a good sign for a healthy price rally.
The above chart illustrates that the SOL price is diving into a deep bearish well. The current price action has dragged the levels below the pivotal support around $202 and pushed it below $200. On the other hand, the Ichimoku cloud, which is still bullish, is about to undergo a bearish crossover. Moreover, the token seems to have entered a distribution phase, as the Accumulation/Distribution has been plunging over the past few days. This suggests that the price may undergo an extended pullback until the end of the month.
Key Levels to Watch Out
Immediate Resistance: $205
Immediate Support: $196.31
Major Resistance: $215
Major Support: $186.94
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