Summary Solana drops to $159 after losing the key $170–$180 support range. Exchange outflows hit $24.3 million in 24 hours, signaling selling pressure. Open interest climbs to $7.72 billion as short positioning builds. By Parshwa Turakhiya Solana ( SOL-USD ) traded near $159 on Thursday, attempting to stabilize after breaking below the critical $170–$180 support zone that had held since August. The sharp fall came alongside accelerating exchange activity, with $24.3 million in net outflows recorded over the past 24 hours, according to Coinglass data. Persistent red flow readings show that tokens are being moved to exchanges rather than withdrawn, a trend that often precedes further downside when confidence fades. Breakdown confirms bearish continuation The technical setup on the daily chart confirms that Solana has shifted from consolidation into a controlled bearish continuation. Price now trades below the 20-, 50-, and 100-day EMAs, clustered between $182 and $194, all trending downward. This EMA compression above price acts as a resistance band, rejecting every short-lived bounce. SOL price dynamics (Source: TradingView) The failure to hold $170, previously a high-volume demand area, marked a major shift in market structure. Multiple rebounds had formed from this exact zone in recent months, but the latest breakdown sliced through it decisively. The next visible demand sits between $156 and $150, a region defined by prior accumulation activity and alignment with Parabolic SAR support. Losing $150 would expose the deeper liquidity pocket near $138, a level that absorbed sellers in late June. Momentum indicators remain negative. The RSI hovers between 38 and 40, signaling room for continued selling before oversold levels appear. The Parabolic SAR dots stay above price, showing that the trend remains intact on the downside. Flows and derivatives data reinforce downside bias Flows continue to mirror what the chart already shows: persistent distribution. Negative netflows through November reveal that investors are actively preparing to sell or hedge positions. The $24.3 million in outflows over the last day marks one of the strongest exchange inflows of the month, further confirming profit-taking and reduced accumulation interest. Derivatives positioning also signals caution. Despite the price decline, open interest rose to $7.72 billion, meaning traders are adding new contracts as price falls. This pattern typically signals an increase in short positions and rising volatility risk. Interestingly, long/short ratios show that retail traders remain optimistic, with Binance data showing 3.85 longs for every short. This reflects aggressive attempts to catch a bottom. Historically, when open interest rises while the majority of traders remain long, markets often experience liquidation-driven declines before a true recovery begins. Outlook remains cautious For Solana to neutralize the current breakdown, it must reclaim $170, the first technical barrier above price. A daily close above the EMA cluster between $182 and $194 would shift structure back toward neutral and open the path to $210, where the descending trendline intersects with prior supply. Until then, the short-term outlook remains defensive. Sellers continue to dictate market direction, flows favor exchanges, and EMAs slope downward like a ceiling on price action. In earlier analysis, Solana was described as vulnerable once it failed to hold the $170 shelf. That view remains valid. The next critical area to monitor lies between $156 and $150 . If buyers cannot defend this level, the market is likely to target $138, where prior accumulation zones absorbed heavy selling. This material may contain third-party opinions; none of the data and information on this webpage constitutes investment advice according to our Disclaimer . While we adhere to strict Editorial Integrity , this post may contain references to products from our partners. Original Post
