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Seeking Alpha 2025-08-04 21:50:00

Solana Price Faces Resistance At $165 As Bearish Structure Limits Recovery Potential (Technical Analysis)

Summary Solana trades near $163.20 after a recent bounce off $160, but remains below key EMAs. Net inflow of $11.97M marks the first significant accumulation after persistent outflows. Recovery unlikely to gain traction unless SOL closes above $174 trend resistance. By Parshwa Turakhiya Solana ( SOL-USD ) is trading around $163.20 on August 4, showing slight intraday gains of 0.09 percent. The token remains under pressure following a structured decline from July highs above $210, with multiple Break of Structure (BOS) events confirming a sustained downtrend. The 4-hour chart shows SOL price testing resistance from the 20 EMA at $164.78, while staying below a tightly packed 50 and 100 EMA cluster between $170.73 and $174.14. Price action also continues to respect a descending trendline that has rejected several rebound attempts, underlining the dominance of sellers. SOL price dynamics (Source: TradingView) A recent swing low near $160 attracted some buying interest, with bids stepping in above the next major support band near $150. This short-term bounce reflects potential accumulation, but overall structure remains bearish unless SOL price can reclaim the EMA cluster and close above $174. Notably, bearish order blocks linger between $178 and $182, which aligns with prior Change of Character (CHoCH) and Equal High ((EQH)) levels, forming a technical ceiling for any recovery attempt. Inflow shift suggests early accumulation, but momentum remains weak Supporting the mild rebound, on-chain data from Coinglass revealed a net spot inflow of $11.97 million for Solana on August 4. This marks the first significant positive flow after a prolonged stretch of outflows, potentially signaling early stages of accumulation. Historically, similar inflows have contributed to price stabilization, though their impact has remained muted without sustained follow-through. Despite the inflows, technical momentum remains weak. Solana’s moving averages are beginning to fan out in a bearish alignment, and the trendline from recent highs remains unbroken. Without a decisive break above $174, downside risks toward the $144 to $150 demand zone persist. The next sessions will be critical in determining whether SOL transitions into recovery or extends its correction. In earlier updates, Solana’s weakening trend structure was highlighted, with a focus on key rejection zones near $174. That level remains technically significant, with failure to reclaim it maintaining a downward bias. Until broken, Solana’s rallies are likely to face exhaustion and renewed selling at every key moving average retest. 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

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