- Solana (SOL) faces heavy losses as Bitcoin’s drop triggers a broader market sell-off.
- Glassnode shows positive capital inflows for Solana, signaling a potential trend reversal.
- Solana price decline mirrors the market downturn, with $13.42M in long liquidations reported.
On May 15, Solana (SOL) suffered significant losses after Bitcoin fell below 103,000. This action set off a wide selling rush in the crypto market, with many altcoins, including Solana, plummeting. SOL is currently down 8% at press time and trading at $171.02. This decline has raised concerns that Solana could test lower support levels near the $150 mark.
In spite of these losses, data obtained from Glassnode shows how Solana may reverse its negative trend. Solana has started to revive after some months of realized cap outflows. The 30-day capital inflows have been growing positively at around 4-5%. This means that demand for Solana among investors is resurging, increasing interest in the network.
This means that while the current market downturn has hit Solana’s price, the return of capital into Solana indicates increasing confidence in its long-term future. Such a trend can help soften Solana’s price against further downtrends.
Solana’s Price Decline Follows Market Bearishness
The decline in the price of Solana is part of an overall crypto market bearish phenomenon. Other top altcoins like Ethereum and XRP have also declined by 2.04% and 5.70%, respectively. Solana’s price has dropped from an intraday high of 181 to 170 today’s low. This fall is a reflection of the hard times in the broader market. With the bears dictating terms, the technical picture for Solana remains bearish.
Despite the negative sentiments prevailing in the market, there have been massive liquidations. Coinglass reported $13.42 million in liquidations of long positions in the last 24 hours. This highlights the ongoing pressure from the bearish trend. Without signs of immediate improvement, Solana’s short-term outlook remains uncertain.
Related: Solana’s Momentum Grows as Traders Eye $190 Target for May
The future performance of Solana will depend on whether its capital inflows continue to reverse. Although the short-term outlook is dark, the return of demand could help support the cryptocurrency. However, given that bearish momentum was still in play, Solana’s price may continue to probe lower support levels, probably retracing to the $150 range.
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