The cryptocurrency market remains uncertain, with Solana (SOL), the fifth-largest cryptocurrency by market cap, showing signs of potential decline.
On Monday the asset struggled to maintain momentum amid a bearish atmosphere impacting the broader market.
After hitting record highs, Solana has entered a corrective phase, recently slipping below the $227 support mark. Analysts highlight a bearish head-and-shoulders pattern forming on its chart, a structure that often signals further downside. After the altcoin closed below $226, experts warn it could drop another 10%, potentially testing the $200 level in the days ahead.
However, not all indicators point to weakness. Solana is still trading above its 200-day Exponential Moving Average (EMA), a sign of resilience in its longer-term trend. Furthermore, its Relative Strength Index (RSI) suggests the token may be nearing oversold territory, leaving room for a potential rebound.
While technical patterns suggest short-term challenges, recent data reveals a notable surge in outflows from exchanges. According to Coinglass, over the past four days, $159 million worth of SOL has been withdrawn by large investors. Such movements are often viewed as a bullish signal, as they indicate that holders are moving assets to private wallets rather than preparing to sell.
This activity suggests that investors may be taking advantage of current price levels to accumulate SOL, betting on its recovery potential. Despite the immediate bearish outlook, this accumulation points to enduring confidence in Solana’s long-term prospects.
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