Solana is currently trading under visible selling pressure as market structure reflects a clear shift toward bearish control. After failing to sustain higher highs earlier in the year, price action has transitioned into a prolonged corrective phase. The market is now consolidating near a historically significant demand area, raising important questions about trend continuation and downside risk.
The daily chart highlights multiple Breaks of Structure (BOS) to the downside, confirming that sellers remain in control. A notable Change of Character (CHoCH) occurred after price was rejected from a previous premium supply zone, signaling the end of bullish momentum. Since then, Solana has consistently printed lower highs and lower lows, reinforcing the prevailing bearish trend.
Key Supply and Demand Zones Define Risk Levels
Price is currently hovering above a weak low demand zone, which has already been tested multiple times. Each retest has resulted in weaker reactions, suggesting diminishing buying interest. Overhead, a strong supply zone remains intact, where previous rallies were aggressively sold. As long as price stays below this resistance, upside attempts are likely to face rejection.
If the current demand zone fails to hold, further downside toward lower liquidity levels becomes probable. However, a strong bullish reaction from this area could trigger short-term consolidation. Trend confirmation should be awaited before positioning, as the broader structure still favors sellers.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.