Now the popular altcoin Solana (SOL) is in a difficult situation: due to its inability to break through resistance at $270, the cryptocurrency is in a downtrend that could take it to new lows

We break down what's happening in the Solana (SOL) market and what to expect from the cryptocurrency's price.

Interest in Solana is waning

Over the past few days, the number of new addresses in the Solana network has been steadily decreasing. Such dynamics signals that new investors are in no hurry to come to the cryptocurrency market, which means that SOL is losing its leading position in the industry.

The lack of trader interest is a negative signal that could have far-reaching consequences for Solana. If interest and trust in the project will steadily decline, then the altcoin is unlikely to be able to start a full-fledged rally until the market situation changes.

At the same time, the Chaikin Cash Flow (CMF) indicator is struggling to stay above the zero line. This means that capital inflows into Solana are too small to support the altcoin's uptrend. If the indicator moves into the negative zone, the pressure on the cryptocurrency's rate will increase even more.

In general, such dynamics of the indicator can be associated with waning investor confidence. If market conditions do not improve, SOL will face a pullback to new lows.

SOL forecast: uptrend persists

At the time of writing this analysis, SOL is trading at $205.78. Over the past 24 hours, the altcoin has fallen in price by 2.1%.

Now the token rate is holding above the support at $201, despite the constant decline in recent days. This level will be critical to prevent sharp drops and determine future movement.

Earlier, BeInCrypto's editorial team broke down what to expect from bitcoin (BTC) and Ethereum (ETH) this week.

If market-wide conditions do not improve, Solana is likely to lose the above-mentioned support level and fall below $200. In this case it may fall to $183, due to which investors will suffer significant losses.

However, if the trend turns bullish, the recovery may bring SOL to the levels near $221. Successful breakdown of this resistance and consolidation above it will cancel the bearish forecast and clear the way to higher highs.

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Investors are not in a hurry to put money into Solana: SOL rate may slip below $200