Why Solana’s 21% Price Drop is Both a Mystery and a Masterclass in Trading Missteps

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Key Takeaways

Why Did Solana’s Drop on Monday Shock the Market?

Last week’s hefty $421 million influx into Solana’s U.S. ETFs had some market participants feeling a bit too smug, lulled into a false sense of bullishness.

Are Swing Traders Facing a Rebound, or More Red? (Spoiler: It’s Probably the Latter)

Technical indicators are waving red flags like they’re at a party. With steady selling pressure, it seems a dip toward $145-$150 is all but inevitable this week.

As per the latest AMBCrypto report, Solana (SOL) whales have been quietly stocking up on SOL like it’s Black Friday at the crypto store. This comes despite the rest of the market retreating in fear, like rabbits in a storm. Last week, Solana saw a neat $421 million worth of inflows into U.S. exchange-traded funds (ETFs). Meanwhile, Bitcoin (BTC) watched $946 million walk out the door. Talk about a dramatic exit.

But here’s the kicker: Despite all that capital flowing into Solana, the price action was still firmly under bearish control. Who knew? Even the whales seem a bit clueless on this one. The capital inflow didn’t stop the bears from crashing the party. So, will this dip turn into a full-blown downward spiral, or are we in for a surprise rebound? Stay tuned.

Mapping the Key Local Solana Levels (Because Who Doesn’t Love a Good Chart?)

After Solana’s dramatic tumble on October 10th, the bulls put up a valiant fight, defending the $170-$180 range like knights in a crypto castle. They even managed to form higher lows! But wait-this wasn’t some epic comeback. In reality, it was just a cleverly disguised red herring.

Those “higher lows” came with zero “higher highs.” Instead, what we had was a classic case of a symmetrical triangle pattern (yellow), all formed after a strong bearish impulse earlier in October. During this consolidation phase, the On-Balance Volume (OBV) kept plummeting south, as if it was on vacation in the tropics.

Here’s a tip for swing traders: The OBV isn’t exactly waving any ‘buy’ flags. This was your cue that selling pressure was still very much in the driver’s seat. Add to that the fact that the Money Flow Index (MFI) couldn’t even cross above the 50-mark, and it was clear that momentum and capital flow were firmly in the bears’ corner.

Fast forward to the latest dip, and Solana fell below the swing low of $168.8 from October 10th, a move that even had the July support level of $156.65 shaking in its boots.

The $145-$155 range was pivotal back in June and July, and it’s possible this level will act as a support zone in the coming days-if we’re lucky. Traders on shorter timeframes can use Monday’s high of $189 and low of $163 to develop their trading strategies. A bit of a gamble, but hey, what’s crypto without a little risk?

In the short term, expect $163-$170 to act as resistance, while $150 seems to be a support level worth watching (or praying for). Will it hold? Only time (and probably more market dips) will tell.

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2025-11-05 04:22