Solana (SOL) is currently facing significant downside pressure, driven by a powerful convergence of on-chain and technical indicators. A large whale's aggressive short positioning, combined with pervasive market sentiment and structural weaknesses, paints a clear picture of potential further declines for the cryptocurrency.
Mounting Bearish Pressure
A major whale has significantly increased a 20x leveraged short position on SOL, now sitting on roughly $15.9 million in floating profit. This strategic move, executed during market weakness rather than after capitulation, signals strong conviction for continued downside rather than short-term hedging, and is likely to influence broader market sentiment. Technically, Solana’s price remains trapped within a well-defined descending regression trend, consistently forming lower highs and failing to sustain rebounds beneath trend resistance. The Relative Strength Index (RSI) also reflects weak demand, remaining below the 50-midpoint without any bullish divergence, further reinforcing the bearish technical outlook and keeping downside risk active.
Overwhelming Sell-Side Dominance
Aggressive spot selling pressure is evident, with SOL's Spot Taker CVD consistently negative over a 90-day period. This indicates persistent distribution as sellers directly hit bids, forcing prices lower. Brief pauses in selling activity only trigger shallow, corrective bounces that fail to flip the CVD positive, confirming rallies remain corrective. Derivatives markets are also heavily skewed bearish, with short positions exceeding 60% and the Long/Short Ratio hovering near 0.63. This one-sided conviction, coupled with funding conditions favoring shorts, amplifies downside momentum and limits the potential for short squeezes, keeping SOL vulnerable to further decline.
Key Price Targets and Liquidity Magnets
The confluence of these bearish factors strongly suggests Solana is gravitating towards significant downside liquidity. The liquidation heatmap reveals dense clusters of bids below current price, which often act as magnetic zones during trending markets. Price is likely to be pulled towards the initial support zone around $120, where buyers might attempt to absorb selling pressure. However, if this level fails to hold due to persistent bearish momentum, the path opens up towards $100, where deeper liquidity and longer-term accumulation interest may finally emerge to stabilize the asset.
