Solana price flashes bearish: Is a deeper drop coming?

The Solana (SOL) price is encountering downside pressure, marked by a bearish engulfing candle at the $167 resistance level, which signals weakening momentum. This resistance level has repeatedly acted as a major barrier for bulls, suggesting a potential breakdown toward lower support levels. This development raises concerns about a deeper corrective move in Solana's price.

The $146 support level is critical, but it is weakening after multiple retests without significant bounces. The bearish engulfing candle at $167 has pushed SOL back to this high-time-frame support, but the market reactions appear weak, with no strong bullish follow-through. In technical analysis, repeated testing of a support level often leads to its breakdown, and this repeated testing increases the risk of a move lower.

If SOL breaks below $146, the chart shows minimal structural support between this level and the next significant support at $112. Due to thin liquidity and a lack of price acceptance in this range, the move is expected to be swift, potentially aligning with previous market structures. The $112 region could act as a logical downside target if the bearish momentum persists.

For bulls to regain control of Solana's price, it is imperative to reclaim the $167 resistance and close above it with substantial volume. Until this occurs, the bearish engulfing candle at $167 serves as a warning signal of ongoing downside momentum.

In the short term, Solana must hold the $146 support to avoid a swift decline toward $112. A decisive breakdown below $146 would confirm bearish continuation, while a strong bounce could lead to another attempt at the $167 resistance. Traders and investors should watch these key levels closely, as they will define the direction of Solana's price in the near future.