{"id":20688,"date":"2025-11-04T15:15:30","date_gmt":"2025-11-04T15:15:30","guid":{"rendered":"https:\/\/investx.fr\/en\/?p=20688"},"modified":"2025-11-04T15:15:36","modified_gmt":"2025-11-04T15:15:36","slug":"solana-below-160-price-drop-this-week","status":"publish","type":"post","link":"https:\/\/investx.fr\/en\/2025\/11\/04\/solana-below-160-price-drop-this-week\/","title":{"rendered":"Solana Plummets Below $160: Will it Drop Further This Week?"},"content":{"rendered":"\n

Bearish Crossovers Confirm Solana ‘s Technical Weakness<\/h2>\n\n\n\n

The breakdown of the ascending wedge pattern by Solana<\/a> has marked the beginning of a structural correction phase<\/strong>. This technical configuration is generally considered a reversal signal. It now comes with two exponential moving average (EMA) crossovers that are closely watched by traders.<\/p>\n\n\n\n

\"solana<\/figure>\n\n\n\n

The first involves the 50-day EMA that is about to cross below the 100-day EMA<\/strong>. Additionally, the second sees the 20-day EMA dangerously approaching the 200-day EMA. These crossovers are called “death crosses<\/strong>” in technical terminology. They traditionally signal sellers taking control and often precede a new leg down before stabilization.<\/p>\n\n\n\n

These configurations reinforce the bearish short-term structure<\/strong> and justify caution among traders. Historically, such signals have led to additional declines of 10 to 15%<\/strong> before a new sustainable support forms. However, technical analysis only tells part of the story.<\/p>\n\n\n\n

Derivatives Reveal Massive Imbalance Favoring Short Positions<\/h2>\n\n\n\n

Data from derivatives platforms provides crucial insight into the current dynamics of SOL’s price. Bybit’s<\/a> 30-day figures show a striking contrast: only $103.9 million in long positions<\/strong> remain versus $1.45 billion in open short positions.<\/p>\n\n\n\n

\"solana<\/figure>\n\n\n\n

This colossal imbalance<\/strong> reveals that the recent correction primarily results from a cascade liquidation of leveraged long positions, rather than massive selling initiated by long-term holders. The purge of long positions is now practically complete, which mechanically reduces the potential for additional downside<\/strong> caused by forced liquidations.<\/p>\n\n\n\n

Paradoxically, this situation creates conditions for a potential short squeeze<\/strong>. With such an asymmetric perpetual market<\/a> favoring shorts, even a modest bounce could trigger a wave of short position liquidations<\/strong>. This causes a rapid technical rally. The $180 and $191 levels<\/strong> concentrate significant accumulations of shorts that could fuel such a movement.<\/p>\n\n\n\n

Holders Aren’t Selling En Masse, Signaling Resilience<\/strong><\/h2>\n\n\n\n

On-chain analysis via the net position change of holders brings a reassuring perspective<\/strong>. Between October 7 and November 3, net outflows from long-term wallets decreased from -10.52 million SOL to just -1.37 million SOL, representing an 87% reduction in outflows<\/strong>.<\/p>\n\n\n\n

This stabilization in long-term holder behavior sharply contrasts with the frenzied activity observed in derivatives markets. It suggests maintained conviction among core investors, who aren’t capitulating despite the correction. This resilience typically constitutes a precursor signal for market bottom formation<\/strong>.<\/p>\n\n\n\n

\"solana<\/figure>\n\n\n\n

The current $166 level<\/strong> represents an immediate support zone, just above the critical $163 area. If the latter gives way, $155 becomes the make-or-break level for Solana<\/a><\/strong>. A successful defense of this threshold, combined with the low number of remaining long positions, could mark the bottom of this correction. Conversely, a clean break below $155 would invalidate the stabilization scenario<\/strong> and pave the way for new lows.<\/p>\n\n\n\n

To the upside, breaking above $191<\/strong> could catalyze a cascade liquidation of shorts toward $200, or even $222 (Fibonacci level 0.786). The path of least resistance remains bearish in the short term. However, positioning fundamentals suggest that a rebound could occur sooner than anticipated by consensus.<\/p>\n\n\n\n

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