Summary Solana rebounds toward the mid-$140 region after slipping below long-term channel support. Spot flows remain deeply negative, with another $3M outflow on November 20. Derivatives activity rises as open interest climbs above $7.5B with volume up more than 20 percent. By Parshwa Turakhiya Solana ( SOL-USD ) attempted to stabilize near the mid-$140 region on Thursday after one of its steepest multi-week declines of the year pushed the token below the lower boundary of its long-running ascending channel. The move follows a drop from the $220 zone driven by heavy market-wide selling and persistent outflows across major spot venues. The latest bounce is the first sign that buyers are attempting to defend structure rather than absorb forced selling. But the backdrop remains tense, with Solana still trading below several key moving averages and carrying the weight of months of distribution. Technical trend weakens as Solana stays below major EMAs The chart shows Solana trading beneath the 20-, 50-, 100- and 200-day EMAs, now clustered between $153 and $182, forming a thick overhead resistance band. The early November break below the ascending channel signaled a transition from a trending advance to a corrective phase. Recent attempts to retest resistance have stalled near the Supertrend line around $172, which remains firmly bearish. Solana price dynamics (Source: TradingView) Solana is yet to reclaim even the 20-day EMA. Until the token closes back inside the channel or breaks above the initial resistance layer near $153, the broader structure retains a clear downward bias. The recent rebound from $128—aligned with the channel’s lower boundary—offered a technical foothold, but buyers still face significant work to reverse the trend. RSI readings across the daily and 4H charts reflect neutral-to-soft momentum conditions. The indicator has struggled to break above the mid-line, underscoring that any strength so far has been reactive rather than driven by conviction. Flow data shows persistent selling as spot outflows continue Spot flows remain one of the dominant bearish forces. Solana posted another net outflow of roughly $3M on November 20, extending a multi-month sequence of red prints that began in mid-July. The flow profile shows heavy distribution even during relief rallies, with inflows rarely matching the magnitude of outflows. This pattern raises questions about the durability of support zones. When rebounds are fueled by short covering or tactical buying instead of long-term accumulation, the base becomes more fragile. The heavy outflow history has closely mirrored Solana’s fall from its $220 highs. Derivatives positioning, however, offers a more mixed picture. Open interest has climbed more than 4 percent in the past 24 hours to above $7.5B, and volume has surged over 20 percent. Long-short ratios are modestly skewed toward buyers on Binance and OKX, with some top-trader positioning showing more than 2:1 long exposure. But the liquidation tape shows short-side liquidations outweighing long wipeouts, signaling that the bounce may be fueled partially by short unwinds rather than clean demand. This combination—rising open interest, uneven liquidations and increasing volume—often precedes a larger directional move, though not necessarily a sustained reversal. Key levels define the path ahead as volatility tightens The $130–$140 region remains the immediate battleground. Solana’s low near $128 aligned almost perfectly with long-term support, giving buyers a natural area to defend. Holding this level allows the token to grind toward $153 and potentially retest the $172 zone where the broader trend flipped bearish. A decisive close below $130 exposes Solana to a deeper retreat toward $115, with little structural support until that area. The upward path is equally clear: reclaiming the 20-day EMA and breaking above the mid-channel dashed trendline would be the first signals strong enough to suggest the downtrend is losing grip. For now, Solana remains in a consolidation defined by heavy outflows, cautious derivatives participation, and a long-term trendline break that still weighs on sentiment. Buyers are selective, not absent, leaving the market searching for a catalyst capable of restoring momentum. In earlier coverage, we highlighted that Solana’s trendline break in early November would pull the token into a deeper corrective phase unless it reclaimed the 20-day EMA. The current setup reinforces that expectation, with price still struggling beneath the EMA cluster and spot flows continuing to show distribution. This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer . While we adhere to strict Editorial Integrity , this post may contain references to products from our partners. Original Post
