The Bitcoin price battles toward $100,000 while short-term altcoin recovery faces hesitation which causes Solana to experience an abrupt price drop. The recent price bounce turned out to be brief as Solana did not manage to keep its upward trajectory which suggests future market declines could stretch over an extended period.
The Solana price showed bullish weakening through a Morning Star pattern before it approached the $200 psychological boundary. Solana met multiple negative barriers while trying to regain $200 on its 24-hour time frame before reaching $220. The price fell by 4.5 percent after a bearish engulfing candle caused it to drop to $205 within a four-hour period.
Solana Faces Continued Bearish Pressure
The bearish trend persisted because Solana did not break past its 38.20% Fibonacci level while simultaneously failing to pass through the red line of the Super Trend indicator. An overbought stochastic RSI showed evidence of crossing bearish in support of expecting additional downside pressure on the price.
The derivatives market has exhibited minor growth in bullish sentiment regardless of ongoing price decline. The rise of Solana’s funding rate from -0.0611% to 0.0013% demonstrates that traders are becoming more optimistic about the platform.
Buy orders increased slightly in January 2023 as the long-to-short ratio reached 0.9759 even though traders maintained more bearish positions than bullish ones. Open interest in Solana derivatives showed a minor decline of 0.71% which led to its current stable position at $5.5 billion despite market confusion.
Solana’s network presence expands vigorously outside of price developments. An increased level of developer confidence is evident through SolanaFloor reports that bridge transactions from other chains exceeded $1.45 billion during January. DeFiTuna co-founder CavemanDhirk pointed out that Solana surpasses Ethereum in terms of speed and efficiency while offering easy use for traders.
📊REPORT: Over $1.45 billion bridged to @Solana from other chains in January. pic.twitter.com/SiFmOy1uwU
— SolanaFloor (@SolanaFloor) February 3, 2025
The negative technical signals point toward Solana facing additional price drops until strong purchase support reaches the $200 level. The rising selling pressure might convert $175 into the next vital support area. The price of Solana may begin an upward rally if it breaks past the 38.20% Fibonacci level which would direct its trajectory toward reaching $243.50 near the 61.80% Fibonacci level.
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