Solana faces heavy selling – Can SOL potentially drop to $138?

• Key technical indicators, including Cumulative Volume Delta (CVD) and Funding Rates, point to negative market sentiment.
• The approval of a Solana ETF (85%) could be a long-term catalyst for price recovery.

In the rapidly evolving world of cryptocurrencies, Solana [SOL] is making headlines since it is currently in a bearish trend, with its price declining from $200 to $187.99, reflecting strong selling pressure.

Key technical indicators, including Cumulative Volume Delta (CVD) and Funding Rates, point to negative market sentiment. Additionally, the Relative Strength Index (RSI) at 32.54 suggested continued downward momentum.

Will SOL recover or continue its downward trajectory?

 Solana: Bullish hope or bearish reality?

AMBCrypto’s look at the price trend revealed a well-defined bearish pattern. From the 31st of January to the 3rd of February, SOL has consistently formed lower highs and lower lows, a classic indication of bearishness.

The recent price movement from $200 to $187.99 and its subsequent rebound to $196.93 suggested a temporary recovery, but not indicate a full reversal.

Also, the formation of a descending triangle signaled continued consolidation, with the risk of a further drop to $138 if the $191 support level fails to hold.

Hence, without a bullish catalyst, SOL remains in a precarious position, susceptible to further losses.

What lies ahead for SOL?

Several indicators reinforced the bearish outlook for Solana.

The Cumulative Volume Delta (CVD) on the 30-minute chart displayed values ranging from -764,722K to -786,138K, confirming dominant selling pressure over buying activity.

Funding Rates at -0.0170 further showed a market favoring short positions, as traders anticipated further declines.

The RSI at 32.54, while not in the oversold territory, highlighted continued weakness, with a slight chance of reversal if buyers step in at key support levels.

The volatility index of 236.03 illustrated significant price fluctuations, making SOL highly unpredictable. So, if SOL fails to hold $191, volatility could drive it down to $138, reinforcing continued instability.

Can a SOL ETF change the game?

The approval of a Solana ETF (85%) could be a long-term catalyst for price recovery. Institutional investment via ETFs often enhances liquidity and demand, potentially stabilizing the market.

However, given the current bearish trend, the ETF alone might not trigger an immediate price reversal but rather lay the groundwork for future growth.

Read Solana’s [SOL] Price Prediction 2025–2026

Finally, SOL is in a clear bearish trend, with strong selling pressure and heightened volatility.

While the ETF approval presents long-term growth potential, the current technical indicators suggest further downside risks before any sustainable recovery occurs.