Solana (SOL) experienced a 9.5% drop, falling to $186 from $205, with potential formation of a bearish engulfing pattern on the daily chart. Long liquidations of $30 million occurred, leading to a correction as futures open interest hit an all-time high of $12 billion.

Onchain indicators suggested the correction, with net taker volume becoming sell-heavy and spot cumulative volume delta dropping near $200, signaling profit-taking. Aggregated futures CVD showed a bearish divergence as funding rates reached a quarterly high, indicating an overcrowded long trade setup that triggered a long squeeze.

Despite the 9% dip, SOL’s recent 56% rally over 30 days suggests a healthy reset after strong gains. Technical analysis shows $180 as crucial support for continued bullish momentum, with a confirmed bullish break of structure (BOS) and a golden cross between the 50-day and 200-day EMAs reinforcing positive price action.

A positive reaction at the $180 support level would strengthen bullish momentum, while failure to hold could lead to a deeper correction towards the $168-$157 range. This zone aligns with key technical levels and prior market imbalances, serving as a potential retest area for SOL.

Read more at Cointelegraph: SOL Bulls Need To Hold $180 To Protect The Uptrend