The post Solana Price Analysis: Traders Panic as SOL Drops to $161 – Rebound Ahead? appeared first on Coinpedia Fintech News
Solana (SOL) has been struggling, recently hitting a three-month low of around $160. For traders who saw SOL trading near $293 in January, this decline has been frustrating. The excitement around its previous rally has faded, and many now fear more losses ahead.
According to market intelligence platform Santiment, extreme bearish sentiment often signals a shift in market direction. With traders losing confidence and panic selling kicking in, history suggests that a rebound could be closer than most expect.
Is Solana gearing up for a surprise recovery? Let’s take a closer look.
Santiment reports that Solana’s sentiment is at its lowest level since January 20, when the market last saw a sharp decline. This suggests that many traders have turned extremely bearish, expecting prices to fall further.
At the same time, social media discussions about Solana have surged, showing that many are closely watching the token’s struggles. The increased attention reflects growing concerns and a loss of confidence.
However, history shows that when market sentiment becomes overly negative, a recovery often follows. When most traders expect losses, the market has a tendency to move in the opposite direction. Panic selling can create opportunities for strategic investors to buy at lower prices before an eventual rebound.
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Solana has been in a downtrend, forming lower highs and lower lows. But technical indicators suggest this may change soon.
A key signal is the 4-hour Relative Strength Index (RSI). While SOL’s price has been making lower lows, the RSI has been forming higher lows. This divergence suggests that selling pressure may be weakening, hinting at a possible trend reversal.
If SOL breaks above the key resistance at $173, it could signal the start of a recovery. The next major resistance levels to watch are $195.81 and $216.90—previous price zones where SOL consolidated before.
For now, traders are closely watching Solana’s next move. If negative sentiment persists while prices stabilize, a recovery could be on the way.
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