Solana Price Forecast: Is $140 on the Horizon as the Key Demand Zone Gets Tested?

As Solana [SOL] struggles to maintain its price, a potential drop to $140 looms. This forecast hinges on Bitcoin's performance and the current bearish momentum observed in Solana's technical indicators.

Key Takeaways

Solana has successfully resisted downward pressure at the $150 mark over the past week, but a dip to $140 seems unavoidable.
The price movement will heavily depend on whether Bitcoin remains stable above $98k-$100k, offering the potential for a rebound from $140.
Solana has experienced a nearly 10% decline from its weekly peak of $171.9 and was trading around $155 when this analysis was conducted.
Despite its lead in the stablecoin sector and substantial monthly revenue, Solana has yet to establish a long-term upward trend.

Solana 1-day Chart

On the daily chart, SOL has fallen from a symmetrical triangle pattern and lost its grip on the $180 support level in early November. Since then, the price has recorded a sequence of lower highs and lower lows, which is typical of a downtrend.

The On-Balance Volume (OBV) indicator has shown a declining trend, suggesting that the price drop has been caused by sustained selling pressure rather than just a temporary liquidity search. The Money Flow Index (MFI) supports this bearish sentiment, remaining below 50 and indicating prevalent selling pressure.

Solana price prediction leans bearish in the short-term as magnetic zones pull prices lower

Indicators Suggest a Possible Dip to $140 for SOL

Solana 1-hour Chart

According to the 1-hour chart, the $145-$155 demand zone has been crucial since November 4. At the time of writing, this support zone was undergoing a retest. With Bitcoin [BTC] trading around the $102k mark, there is a significant chance that this demand zone will break if the broader market faces additional selling pressure.

The technical indicators do not indicate a bullish reversal. The OBV continued its downward trend, reflecting weak buying interest even during price recoveries. Meanwhile, the MFI dipped below 20, suggesting oversold conditions.

Solana Liquidation Heatmap

Analyzing the heatmap over the past month reveals a heightened likelihood of a more profound price correction. The $144 and $140 levels are identified as crucial zones, relatively close to the current price. These zones could pull SOL prices down before a potential bounce occurs. In summary, the short-term outlook for Solana's price is bearish, suggesting that a decline to $140 is imminent, with liquidity stretching down to $120, indicating traders should prepare for ongoing bearish activity.

Disclaimer: The information provided in this article does not offer financial, investment, trading, or other types of advice and reflects only the author's opinion.