• Solana’s price struggles at $183 after a 40% drop from $228 resistance, with a bearish RSI at 26 hinting at further declines.
• Solana’s TVL plummets 8% overnight to $8.45B, sparking concerns of a potential repeat of prior double-digit price drops.

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Solana’s price struggles to keep its footing as it trades below $194, continuing its downward spiral, marking a decline of 19% in the last week. The decline triggered $34.75 million in liquidations. $29.43 million of that was tied to long positions, while only $5.32 was short, hinting at a grim trajectory ahead, according to Coinglass. 

Resistance around $228 earlier in the week proved too much for SOL. A steep 40% decline followed, pulling the token from the resistance level to the current level of $183. The bearish momentum is clear, with the RSI indicator dipping to 26, well below its neutral level of 50. The possibility of SOL revisiting $170 becomes stronger if $203 remains as resistance.  

Solana’s TVL Drops 8% Overnight

A closer look at Solana’s TVL paints a troubling picture. Data from DefiLlama reveals a sharp drop from $9.18 billion to $8.45 billion in just 24 hours. Similar TVL declines were observed on August 3 and October 29, each followed by a price drop exceeding 10%. This historical pattern fuels speculation that the current situation might lead to a repeat performance.  

While the bearish outlook seems dominant, some analysts point to a potential silver lining. A recovery above $203 could shift the tide, setting SOL on a path to retest the $230 resistance level. Should this happen, bullish momentum might return, lifting the cryptocurrency higher.  

However, Solana has faced setbacks in recent weeks. After hitting an all-time high of $263.83 last month, profit-taking dragged the token down to $216. It briefly consolidated between $220 and $230 but struggled to hold these levels. Despite the current downturn, projections suggest SOL might still have a shot at surpassing $400 by the end of the year.  

Bright Spots in a Bearish Outlook

John Michaels, a prominent crypto analyst, maintains optimism regarding Solana’s future. Solana’s steady growth in recent months, combined with a robust support base, suggests a potential surge beyond $400, as CNF previously reported. Michaels pointed to the upward trendline as a critical indicator, forecasting a climb to $420 during the holiday period if resistance barriers are surpassed.

The broader crypto market, fueled by Bitcoin’s pursuit of the $100,000 mark, continues to generate excitement. Solana has historically thrived on bullish market sentiment, and any significant developments—such as approval for Solana-based ETFs—could provide the boost needed for a turnaround.  

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