Solana’s price has recently surpassed the $161 level for the first time in over two months, indicating strong bullish momentum. The surge in the altcoin’s price has caught the eye of traders; however, despite the optimism, there are increasing fears of a potential bearish reversal.
Significant sell pressure is mounting, which could jeopardize the bullish trend that has pushed SOL beyond essential resistance levels.
Risks for Solana Traders
Currently, the liquidation map illustrates that Solana traders are predominantly bullish, with a greater number of long contracts compared to shorts. While this reflects a strong belief in Solana’s upward path, it also carries substantial risk should the market change direction. If Solana’s price corrects and falls to the $161 support level, over $200 million in long contracts could face liquidation. This volume of liquidation would affect market sentiment and might lead to increased selling, deepening the price drop.
The accumulation of long contracts indicates that traders are anticipating the continuation of the bullish trend. However, this creates a precarious situation. A sudden price decline could initiate a series of liquidations, intensifying the downward pressure. Should the sell-off accelerate, traders may hurriedly close their positions, putting further strain on Solana’s price.
Read more: 7 Best Platforms To Buy Solana (SOL) in 2024

From a technical standpoint, Solana’s macro momentum holds vital significance. The Relative Strength Index (RSI) is approaching the overbought territory, often indicating a possible reversal. Historically, significant drawdowns have followed similar circumstances when Solana reached these RSI levels. If the RSI enters the overbought zone, it could instigate a pullback, potentially driving SOL to the $161 support level.
Moreover, the broader crypto market shows signs of caution, with other prominent assets experiencing declines. Solana’s momentum may face challenges if the altcoin market turns bearish. Inability to sustain current price levels could lead to a more extensive downturn, placing Solana at risk of testing crucial support areas.

SOL Price Outlook: Facing Challenges
Solana currently encounters resistance at $175, a level it has not seen in nearly three months. After breaking the $161 barrier for the first time since August, the altcoin demonstrates signs of strength. Nonetheless, the market’s susceptibility to a pullback remains a concern. A decline could revert Solana to its essential $161 support level.
If Solana fails to maintain the $161 support, the next pivotal level to monitor is $155. A drop below $155 would further diminish the bullish outlook, indicating deeper downside potential for the altcoin. Traders should keep a close watch on these support levels, as a breach could lead to additional losses.
Read more: Solana (SOL) Price Prediction 2024/2025/2030

Conversely, if Solana succeeds in overcoming the resistance at $175, the price may rally towards $186. Surpassing this level would invalidate the bearish outlook and restore confidence in the altcoin’s bullish trajectory.
Disclaimer
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