Solana's price has slipped below the critical $200 mark, reflecting broader market pressures following Bitcoin's recent drop beneath $100,000.
In recent days, Solana has experienced notable outflows, with more than $365 million leaving its spot markets. This trend highlights a diminishing demand for SOL and underscores the broader impact of Bitcoin's decline on the altcoin market.
SOL, closely linked with Bitcoin, has seen increased selling activity as traders respond to Bitcoin's weakness. Since Bitcoin fell below the significant $100,000 threshold on February 1, there has been a notable reduction in SOL market participation. Data from Coinglass reports $367 million in outflows over the past three days.
Increased outflows from Solana's spot market suggest a prevalent bearish sentiment, indicating more selling than buying activity. This sentiment is further confirmed by the current long/short ratio for SOL, which stands at 0.93, indicating more traders are betting on price decreases.
Solana's price chart reveals that the Chaikin Money Flow (CMF) indicator is at the zero line, reflecting substantial sell pressure. This metric tracks the movement of capital in and out of an asset. When CMF dips below zero, it typically indicates stronger selling pressure. Should this trend continue, SOL’s price may drop to approximately $187.71.
Conversely, an upturn in demand could challenge this bearish forecast, potentially pushing Solana's price to $229.03.
This analysis highlights the ongoing volatility in the cryptocurrency market and the interconnected influences between leading cryptocurrencies and altcoins.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.