Asks Dominate SOL Orderbook, Is Solana Price Crash to $140 Imminent?

Solana (SOL) is facing an imminent crash despite Bitcoin’s market cap reaching an ATH as the king coin flirts with its $108,000 ATH. Exchange data shows a buildup of ask or sell orders that may push the Solana price to $140 before traders accumulate the dip and aid a breakout past $200.

Asks Dominate SOL Orderbook – Crash Imminent?

At press time, SOL trades at $165 with a slight 2% gain in 24 hours. Despite the gains, Solana’s order book shows that asks are dominating, as exchange data shows that there is a high number of sell orders above the current price between $170 and $171.

As the price rises, these sell orders are going to be filled, which will intensify the bearish headwinds current facing Solana price. This sell-side pressure may also impede buying pressure and force SOL into a prolonged downtrend before positive catalysts emerge to restore the upward momentum.

Moreover, as the above chart shows, SOL price is not the only one at risk, as asks are also dominating the bullish BTC market. If BTC hits these asks, it may cause BTC to drop further away from its ATH, and this may cause retail interest to waver, and also push the price of Solana down.

Liquidation Map Shows a Bearish Solana Price Outlook

The liquidation map shows a bearish Solana price prediction due to a cluster of long liquidations that are currently below price. Data from Coinglass shows that its current price of $165, Solana risks $35 million in long liquidations if the price slips to $164.

If these positions remain open as SOL drops, the ensuing liquidations will accelerate the selling pressure that will cause an imminent price crash. Additionally, a 3% decline in Solana’s price from the current $165 to $160 will cause more than $200 million in liquidations.

This data shows that Solana faces immense long liquidations before it can rebound to the upside. Hence, the price will likely drop lower before buyers find better entry positions to support an upward breakout.

SOL Technical Analysis as $175 Resistance Holds

The Solana daily price chart shows that SOL’s uptrend faced rejection at the $175 resistance level, and if bulls fail to push it past this price, it may force it back to the demand zone between $135 and $143.
Looking at the historical patterns, the price tends to bounce back each time it enters this demand zone.

This means that Solana has to drop lower before it can bounce back up to overcome the $175 resistance level and break out above $200.

The RSI supports this outlook as its price movements show that it often bounces whenever Solana tests the support level in this zone. This means that if the sell orders are filled, and Solana price re-enters this demand zone, the breakout to $200 will occur.

Considering the exchange data that shows a cluster of sell orders above the current price and the liquidation map showing looming long liquidations, a Solana price crash to $140 is imminent before the next bullish leg. The technical outlook shows that dropping to this demand zone may spark buying activity and aid upward gains.

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muthoni

Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.