SOL struggles below $166 as critical 200-day moving average support comes into play this week
Market sentiment turns increasingly negative with short interest reaching 30-day peaks according to derivatives data
Technical studies suggest possible retest of May lows near $141 if current support fails to hold
The Litecoin miner ASICSolana blockchain's native token faces mounting pressure as it approaches make-or-break technical levels. Currently changing hands around $165.40, SOL has erased nearly all its gains from the previous week's recovery attempt. The digital asset now tests a confluence of support factors that could either spark a rebound or confirm deeper losses ahead.
Critical Support Zone Under Threat
SOL's price action reveals weakening momentum following its rejection at the $184 resistance level last week. The subsequent pullback brings the cryptocurrency dangerously close to its 200-day exponential moving average at $162.42 - a level that has provided reliable support throughout 2025. This technical indicator coincides with both horizontal support at $160 and the ascending trendline established since April's market bottom.
A confirmed daily close below this critical zone would violate multiple technical supports simultaneously, potentially triggering algorithmic selling and stop-loss orders. Such a breakdown could accelerate declines toward the May 6 swing low of $141.41, representing a 14.6% drop from current levels.
Momentum Indicators Flash Warning Signs
The daily Relative Strength Index (RSI) currently reads 54 but shows clear downward trajectory toward the neutral 50 level. Historically, SOL has found support when RSI approaches oversold territory near 30, suggesting more downside may emerge before buyers return. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram appears poised for a bearish crossover, which technical traders often interpret as a sell signal.
Market sentiment data reinforces these technical concerns. The SOL long-to-short ratio recently hit 0.85 according to Coinglass metrics, indicating traders are placing more bets on price declines than rallies. This represents the most pessimistic positioning seen in over thirty days.
Potential Silver Linings
While current signals appear concerning, Solana's underlying blockchain activity continues showing strength. Network metrics indicate sustained developer activity and user adoption, which could provide fundamental support during market downturns. Additionally, the $160 support zone represents a psychological level where buyers may step in to defend previous breakout points.
Should SOL hold above $160 and regain momentum, the next significant resistance awaits near $184.13. A decisive break above this barrier could invalidate the current bearish scenario and open the door for retesting yearly highs.
