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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Feb 19, 2025 07:42 UTC
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Solana Price Analysis: Traders Panic as SOL Drops to $161 – Rebound Ahead?
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SOL $ 138.13 (5.50%) 
Solana dropped to $160, frustrating traders who saw highs near $293 earlier.
Santiment says bearish sentiment is rising, which could signal a possible rebound.
The RSI indicator suggests selling pressure is weakening, hinting at a recovery soon.
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.
Are Traders Too Bearish On Solana?
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.
Is a Solana Reversal Coming?
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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FAQs
Solana is up today due to increased buying pressure, improved sentiment, and key resistance breakouts signaling a potential trend reversal.
Many traders see Solana’s dip as a buying opportunity, as history shows extreme bearish sentiment often precedes strong recoveries.
Yes 
No 
