• Solana drops 36% as liquidity outflows and weak momentum push the price lower.
• Key support at $128 breaks, increasing the risk of a decline to $100 or lower.
• Some traders remain bullish, with rising long positions hinting at a potential rebound.

Solana —SOL, has struggled over the past month, losing 36% of its value. Selling pressure continues to grow, pushing the price lower. A key support level has already broken, signaling potential trouble ahead. Liquidity outflows have increased, showing that investors are moving funds elsewhere. Daily trading volume dropped to $3 million, the lowest since September 2024. Many traders fear further losses, but some still expect a recovery.

Solana Faces Strong Selling Pressure

SOL’s Momentum has weakened significantly as more investors sell their holdings. Trading volume and price have both fallen, a sign of growing uncertainty. Total Value Locked (TVL) in Solana-based protocols dropped from $12.19 billion in January to $6.69 billion. This decline suggests many investors have lost confidence and are pulling funds out.

Technical indicators paint a concerning picture. Losing the $128.01 support level increases the risk of a drop to $100. If buyers fail to step in, further declines to $85 could follow. Liquidity clusters between $120 and $114 may also pull the price lower. With selling pressure still strong, a bottom has yet to form.

Is SOL About to Rebound?

Some traders believe a recovery could still happen. Open Interest and funding rate data suggest buying pressure is increasing. Coinglass’s long-to-short ratio stands at 1.004, showing more buyers than sellers. The OI-weighted funding rate turned positive, reaching 0.0086%.If Solana reclaims the $128 support level, bullish momentum may return.

A sustained increase in buying pressure could drive the price higher. However, failure to hold key levels may trigger more declines. Investors must stay alert and watch liquidity flows closely. The next few weeks will determine whether Solana finds stability or continues dropping.

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