Solana Price Prediction: SOL dumping pressure intensifies, short positions could dominate and fall towards 167 dollars.

The price of Solana (SOL) has further declined, currently reported at 183 USD during today's (29th) Asian afternoon session, after closing below a key support level the previous day. The cumulative volume delta (CVD) of spot traders has turned negative, further strengthening the bearish rationale for SOL, indicating a shift in the sellers' dominance. Technical analysis shows that momentum is weakening, raising concerns about a potential pullback in the short term.

SOL bears dominate momentum

As shown in the figure below, CryptoQuant data highlights the selling pressure on SOL. The Taker CVD (Cumulative Volume Delta) of SOL turned negative last week and has been steadily declining since then. This indicator measures the cumulative difference between market buying and selling volume over a three-month period. When the 90-day CVD is positive and continuously increasing, it indicates that Takers are in a buying-dominant phase; when the 90-day CVD is negative and continuously decreasing, it indicates that Takers are in a selling-dominant phase.

(Source: CryptoQuant)

Another factor supporting the bearish outlook for the platform is the recent decline in traders' interest and liquidity in the SOL chain. Data from Artemis Terminal shows that since the beginning of July, the decentralized exchange (DEX) trading volume of the SOL chain has been steadily decreasing.

(Source: Artemis)

SOL Price Analysis

The price of SOL encountered resistance near the high of $205.34 on Wednesday, February 14, falling by 10.29%. However, SOL consolidated around its daily level of $184.13 over the next three days, closing below that level on Monday. As of the time of writing on Tuesday, it was trading at approximately $181.43.

If SOL continues to pullback, it may extend to the 50-day Exponential Moving Average (EMA) at 167.12 USD.

On the daily chart, the Relative Strength Index (RSI) is at 55, pointing downward, significantly retreating from last week's overbought level, indicating that the bullish momentum is weakening. Additionally, the Moving Average Convergence Divergence (MACD) indicator also formed a bearish crossover on Monday, issuing a sell signal, suggesting a downward trend in the future.

If SOL recovers and closes above the daily resistance level of $184.13, it may extend the rebound momentum until the next resistance level of $205.34.

(Source: Trading View)