Solana (SOL) has encountered significant downside momentum after failing to maintain its key support level of $141, currently trading near $135.5 with a 4.10% loss in the last 24 hours. The bearish outlook is reinforced by technical indicators showing a breakdown from a head and shoulders pattern and trading below both 50-day and 200-day EMAs, signaling a sustained downtrend. The relative strength index (RSI) at 33.50 indicates an oversold condition that might prompt a short-term rebound.
Despite these bearish signals, on-chain data reveals optimism among holders and traders. A majority 71.03% sentiment is positive, and $73 million worth of SOL has been withdrawn from exchanges in the past 48 hours, suggestive of accumulation and reduced selling pressure. Moreover, Binance data shows approximately 75% of SOLUSDT traders are holding long positions, indicating prevalent bullish bets despite the price decline.
Market participants face a critical juncture, with the potential for SOL to drop over 20% to around $114 if bearish momentum persists. However, reclaiming the $145 level could spark a 15% rally pushing SOL up to $166. Separately, Solana’s ecosystem continues to develop with new integrations, including support for wrapped Bitcoin (WBTC), contributing to optimistic long-term views. However, technical analyses also indicate risks of retracement to $123–$135 range based on recent price actions.