Solana Faces Bearish Pressure as Technical and On-Chain Signals Point to 11% Downside Risk

Published: 2025-06-03 17:15:41 |

Solana (SOL) has experienced significant volatility in recent weeks. Initially, after a 13% weekly decline, technical analysis using the Tom Demark (TD) Sequential indicator suggested a potential bullish reversal due to prolonged selling pressure. However, this positive outlook was complicated by on-chain data showing a large whale deposit of 2.86 million SOL (valued at $441 million) onto Binance, typically indicating possible large-scale selling that could increase bearish pressure. More recently, technical indicators have reinforced a bearish outlook. As of June 3, 2025, SOL is trading at $161.36 and struggling to break the $165 resistance level while hovering around the 50-period EMA at $158.01. The price has formed an ascending channel on the 1-hour chart, but both the Relative Strength Index (RSI) at 58.21 (showing downward momentum) and a fresh bearish MACD crossover signal weakening buyer enthusiasm. Lower volume confirms the absence of bullish accumulation. A confirmed breakdown below the channel could push SOL down to $143.35, an 11% decline from current levels. Crypto traders should closely watch for further price action confirmation, as the combination of bearish technical signals and significant whale activity signals increased downside risk for Solana in the near term.

Bearish

The news highlights a convergence of bearish technical indicators for Solana (SOL), such as a declining RSI, bearish MACD crossover, and a failure to break key resistance levels, all signaling increased selling pressure. The additional on-chain evidence of a major SOL whale transferring nearly $441 million worth of tokens to Binance signals potential large-scale sell-offs, which could amplify downside momentum in the short term. While earlier data suggested a possible technical rebound, the latest developments point to a greater risk of price breakdown. Historically, such a confluence of negative technical and whale activities has led to extended declines, warranting caution from traders.