Solana's Price Decline at $160 Support: Breakdown Risk Grows

The price of Solana is under increasing pressure at the $160 support level as bearish momentum continues to build. The presence of consecutive lower highs combined with weak trading volume indicates a higher risk of a significant price drop.

Key Takeaways

Solana's price struggles at the crucial $160 support level, facing a potential breakdown.
The market structure displays consistent bearish trends, with lower highs and weaker trading volumes.
A failure to maintain the $160 level could lead to a corrective move towards $131.
Strengthened buying activity could result in a temporary bounce back to the $180–$190 range.

Solana price tests key support, weakness suggests further downside.

Technical Analysis of Solana's Price

Solana's price has recently shown signs of weakness as it hovers around the $160 high-timeframe (HTF) support level, which has already faced multiple tests. Although there was a brief bounce from this point, the overall market dynamics and volume indicate a rising bearish momentum that may lead to a breakdown if this level cannot be sustained.

Solana price weakens at $160 support, risk of breakdown increases - 1 SOLUSDT (1D) Chart, Source: TradingView

Currently, the market structure for Solana is clearly bearish. Following the loss of the point of control (POC) earlier this month, the price has been developing a pattern of lower highs and lower lows, which is a classic indication of ongoing downward pressure. A backtest of the HTF resistance zone resulted in a notable rejection, driving the price back towards the crucial $160 support level.

While this support initially led to a small rebound, the latest test is revealing signs of weakness. Historically, repeated tests of the same support level without a significant upward reversal suggest the exhaustion of buying pressure. If Solana closes below the $160 mark on a daily basis, this could signal a structural breakdown and increase the likelihood of a corrective move towards the $131 HTF support, which aligns with the next major liquidity cluster.

From a volume standpoint, the absence of bullish inflows is further intensifying the bearish outlook. There has been no noticeable increase in demand or bullish volume that could indicate accumulation at current levels. Instead, trading activity is gradually fading, signaling that sellers have the upper hand.

Unless Solana can reclaim the lost POC and decisively close above local resistance levels, the prevailing trend is expected to remain bearish. A consistent close below $160 would also negate any potential short-term bullish setups, reinforcing the ongoing downtrend.

Anticipating Future Price Movements

If Solana loses the $160 support, a decline towards $131 appears to be the most likely outcome. This would extend the bearish trend that has been evident since June, creating yet another lower low in the overall market trend.

On the flip side, if buyers manage to hold the $160 support level and increase trading volume, a temporary rebound to the $180–$190 range could occur before further price consolidation.