Solana Faces Selling Pressure Amidst Ongoing Bears Dominance

• At the time of writing, SOL is trading at $93.58, down 0.87% in the last 24 hours.
• If the price manages to go above $97.1 level, then it will likely test $101 resistance level.

As Solana (SOL) surged through many price points in December, the on-chain transaction volume soared along. SOL’s price continued to rise until early January, after which it succumbed to bear dominance and has been facing severe selling pressure. However, the volume of blockchain transactions has been steadily rising, with a recent explosion of 700% according to on-chain statistics.

The latest data from CoinShares shows that $151 million poured into crypto investment funds during the first week of 2024. Bitcoin received $113 million, the most of any cryptocurrency.

On the other hand, during the same period, $1 million left the ShortBTC fund, which is used for shorting Bitcoin. The United States accounted for 55% of the inflows, even though the spot-based ETF has not yet been introduced there. While $29.6 million was poured into Ethereum over the period, $9 million was pulled out of Solana in the first week of this year. 

Bears in Control

At the time of writing, SOL is trading at $93.58, down 0.87% in the last 24 hours as per data from CoinMarketCap. Moreover, the trading volume is up 58.02%. The price faced severe selling pressure and found support at $85.6 level today. 

Source: CoinMarketCap

If the price manages to go above $97.1 level, then it will likely climb further to test $101 resistance level. However, if the price manages to go under $89.4 level, then it will likely decline further to test $85.6 support level. Breaking below this level would likely see price testing $70.7 support level.