Buyers retreat, Solana price faces a $70 decline risk

Solana prices fell below US$73. Weak spot demand and continued capital outflows exacerbated downside risks.

On August 3, Solana prices fell below US$73. Weak spot demand and continued capital outflows put prices at risk of falling to US$70.

Summary

Solana prices fell 1.47% to US$72.55, close to the lower trajectory of the daily Bollinger Line. The 4-hour chart shows that SOL is below all four tracking moving averages, with the 200-cycle moving average at $76.79. Chaikin's capital flow fell to-0.17, indicating that selling pressure continues to exceed buying demand. Clearing liquidity was concentrated around US$73.50 -74.50, making this area the first major upward resistance test.

Solana prices continued their decline and fell below US$73.

According to crypto.news data, Solana (SOL) traded at US$72.55 on August 3, hitting a high of US$73.67 during the day and a low of US$71.98. The daily line fell 1.47%. The decline continued a broader correction from a July high near $82.50. Since that high, SOL has formed a series of lower highs, with bears blocking the rally around $78 and $76 respectively. Prices have now fallen below the mid-track of the daily Bollinger Band of US$75.09, a level that previously served as support but has now transformed into the first major resistance area. SOL briefly fell below the Bollinger Band of $71.49 and then recovered above $72. This reaction shows that buyers remain active in the $71.50 -72 range, but the rebound is limited, indicating that they have not yet regained control. The Awesome oscillator reads-3.56, and the red bar widens below the zero axis, indicating that bear market momentum is increasing in the daily time frame rather than reversing immediately.

Weak spot demand weakened the strength of SOL's rebound

Solana tried to rebound after falling to around US$71 on August 2, but spot demand did not rebound in line with prices. Analyst Ted Pillows described the divergence as a weak signal, saying: "SOL is rebounding, but spot demand is flat, which is a sign of weakness." The 4-hour Chaikin fund flow reading supports this view, with the CMF falling to-0.17, meaning that more money flowed out of SOL than came in during the measurement period. Lower spot participation could make the rally dependent on leveraged derivative positions, which are more likely to reverse because of the lack of direct buying pressure to absorb new selling orders. The weakness has also been accompanied by a cooling of activity associated with speculative Solana tokens from previous highs. Reduced decentralized exchange activity and reduced fee generation will reduce a source of demand for SOL-the need for traders to pay network fees and interact with on-chain applications.

Four-hour indicator shows that bears dominate

Solana remains below all major moving averages on the 4-hour chart. The 20-cycle moving average is at $72.96, followed by the 50-cycle moving average of $73.88 and the 100-cycle moving average of $75.06. The 200-cycle moving average is currently close to $76.79, representing the strongest technical resistance above. SOL needs to recover that level to weaken the current sequence of lower highs. The moving averages are in a short position, with each short-term moving average below the long-term moving average, indicating that a downward trend has been established over multiple trading cycles. A breakthrough of $72.96 may start a second test of $73.88. 73.88-75.06 The dollar range is particularly important because it combines two moving averages and the liquidity visible on the three-day clearing heat chart. If it fails to recover the area, SOL risks testing again for $71.50. A daily close below the lower limit of the Bollinger Band could put $70 in focus, followed by June support around $67.50.

Clearing clusters may increase volatility

CoinGlass's three-day liquidation heat chart shows that the largest concentration area of leveraged positions above the current price is around $73.50 -74. In addition, additional liquidity also appears around $74.50 and $76, which could become potential targets if SOL starts to rebound in short covering. Entering these clusters could force bearish traders to close their positions, accelerating the recovery. However, there is also liquidity below the market near $71.50 and $70. If support around $72 fails, these clusters could attract price declines. This puts SOL between competing liquidity zones. A closer concentration area above could trigger a short-term rally, but weak CMF readings and bearish moving average structure suggest any recovery must be confirmed through stronger spot buying.

Fee burning vote brings potential catalyst to Solana

SolanaFloor reported that proposals involving Solana fee-burning and token deflation entered the preliminary voting stage on August 3. According to the report, these measures will double the annual deflation rate to 30%, reduce expected token issuance by approximately $1.36 billion over six years, and increase daily burn from approximately 650 SOL to 9000 SOL. These numbers are still expected results and not confirmed changes. Proposals must go through a governance process to change SOL's supply dynamics. For U.S. investors, the current context is still related to broader risk appetite. When rising U.S. Treasury yields make low-risk U.S. dollar assets more attractive, high-beta tokens such as SOL may come under additional pressure. As a result, changes in Fed expectations or changes in U.S. yields could affect whether buyers return in the current support area.

The short-term outlook remains bearish below US$75.06. Recovering that level would improve technical aspects and expose $76.79, while a confirmation below $71.49 would increase the risk of prices moving towards $70.