Solana (SOL) Price Might be Preparing for More Pain in Breaking Through Resistance Levels

Solana has been performing worse these days following increasing selling pressure. The recent hack worth $1.5 billion in the Bybit exchange has strengthened the

Solana (SOL) price faced selling pressure on March 29 as the recent market recovery stalled. Despite earlier projections of a drop to $160, SOL price encountered support at the Fib level and began a bullish rally. As the price approaches $180, here’s what traders can expect next.

Solana price stalls at Fib level

Solana price showed signs of recovery following the recent market sell-off. After dropping to lows of $153, SOL price encountered support at the 23.6% Fib level. This level acted as a crucial point of resistance during the downturn from the all-time high.

As buyers pushed the price above the Fib level, it encountered another resistance zone at $178. This level served as support during the downturn from $260 to $153. Now, as the price attempts to rally, the prior support turns into resistance.

Solana price showed some strength as it managed to break through the Fib level. However, the momentum quickly stalled as the price approached the prior support. This suggests that bearish pressure is building up at higher levels.

Solana price drops to $160

The Block’s data reveals that network activity on the SOL chain decreased from a peak of 291 million transactions to 273 million. Furthermore, there has been a substantial decline in active addresses, with the count dropping from a high of 5.7 million to 3.49 million.

This decline in key on-chain metrics indicates increasing bearish control for Solana. As network activity weakens, the probability of initiating an upward rally diminishes.

Moreover, the SOL price might initiate further bearish momentum as the short positions are increasing. Data from Coinglass shows that the long/short ratio has dropped to 0.8993. It suggests that currently 53% of total trades are in short.

Solana price might drop to $160 if bearish pressure builds up at higher levels and stalls the price rally. However, if buyers can overcome the resistance at $180, SOL price could rally to $220.