SOL has seen a decline of nearly 10%, falling from $205 to around $186, raising concerns over a potential bearish engulfing pattern. A critical factor in this movement was a liquidation of $30 million in long positions, which occurred as SOL's open interest (OI) reached an all-time high of $12 billion. The price drop follows a significant rally of 56% in the previous month, making this pullback a potentially healthy correction. Key support is identified at $180, which is crucial for maintaining bullish momentum. A recent golden cross of the 50-day and 200-day EMAs suggests potential further upside if this level holds. Failure to maintain $180 could lead to a deeper correction towards the $168–$157 area, a zone of prior market imbalance and important Fibonacci retracement levels. Moreover, market indicators showed a shift toward sell activity, with net taker volume turning negative. The anticipation is that if SOL can hold above $180, it might set the stage for a rally toward new highs.

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