Solana Price Faces Major Volume Support Loss Amid Rising Capitulation Risk Toward $117

Summary:
Solana's price has fallen below a critical volume support level, indicating increased capitulation risk and a possible decline toward $117. As bearish momentum builds, key technical indicators suggest the market is transitioning to a weaker structure, making price recovery challenging.

Key Takeaways

Solana's price has broken below its Point of Control (POC), indicating a loss of major volume support.
The market is showing signs of bearish momentum with lower lows forming.
If the value area low (VAL) is breached, Solana could see a decline toward $117.
Capitulation risk is growing as selling pressure escalates.
A recovery would require reclaiming the POC with substantial support.

SOL price remains bearish as key volume level is lost.

Analyzing Solana's Price Action

Currently, Solana’s price has experienced a significant shift in momentum after a sharp bearish move, leading to a breakdown of key volume support levels. The emergence of a strong bearish engulfing candle has pushed the price below the Point of Control (POC), which typically represents the market's fair value and acts as a stabilizing pivot.

When the POC is lost, it often indicates that the market is beginning to accept lower prices and is transitioning into a weaker auction phase.

Key Technical Insights on Solana Price

SOLUSDT (4H) Chart, Source: TradingView

The Point of Control is recognized as the level where the highest volume has traded, often serving as the market's balance point. When prices are held above the POC, it typically supports bullish continuation and stability. Conversely, falling below the POC without quickly reclaiming it signals a downward shift in value.

The breach of the POC is a concerning indicator, suggesting that the market is now uncomfortable with previous higher price levels and is starting to accept lower pricing. This could be an early warning of a deeper corrective move, especially if bullish participants cannot defend this breakdown area.

If Solana continues to close below the POC, it raises the likelihood that this bearish trend is not merely a brief shakeout but a precursor to a more significant downward shift.

Observing Market Structure Weakness

With the POC lost, Solana's price is now indicating a bearish transition. The market is beginning to print lower lows, and the next expected behavior is the formation of a lower high, potentially near the value area low.

These shifts in market structure are crucial, as they illustrate a transition from higher highs and higher lows to lower highs and lower lows. This pattern increases the likelihood of continued downward movement until a strong reversal signal, such as a new higher low, emerges. The recent breakdown points to a negation of the prior uptrend, with bearish structure now taking precedence.

If Solana fails to reclaim its previous support levels and continues forming lower highs, it confirms that sellers are dominating the market structure, propelling it further into bearish territory.

Growing Capitulation Risk Toward $117

Should the value area low break and bearish momentum persist, the next key downside target becomes $117, a significant support area yet to be tested since December. In many corrective phases, when a crucial support level fails, prices can drop rapidly due to increased selling pressure and liquidity shifts, further depressing the market.

Capitulation occurs when prices swiftly move down to a lower support level because of selling pressure, triggered stop-loss orders, and a sudden shift in market sentiment. Solana's current structure suggests an increasing risk of capitulation, particularly if the market continues to lose vital support levels without recovery.

A move toward $117 would signal a full downside rotation into deeper demand zones, likely becoming a major area for buyers looking to stabilize prices.

Future Price Action Expectations

Solana's market has turned bearish following its break below the Point of Control, indicating a significant loss of volume support and weakening the recent recovery structure. Now, the price is at risk of further declines, with the value area low serving as a crucial support level that needs to hold to prevent acceleration.

If SOL cannot reclaim the POC and dips below the VAL, capitulation risk will significantly rise, with $117 becoming a key downside target. For a recovery scenario to gain traction, Solana would need to reclaim the POC with strong acceptance and volume, signaling that the breakdown was merely a temporary liquidity event instead of a structural failure.