Solana (SOL) has experienced a significant technical setback, losing a key support level at $88 and reverting back into its previous trading range. This shift in market structure has placed the next major support zone at $78 in focus. The $88 level, which previously acted as structural support and aligned with the value area high, has now flipped into resistance, confirming a rejection of higher prices and a weakening of bullish momentum.
Solana's price action is now hovering near the Point of Control (POC), indicating market indecision. A confirmed close below the POC would significantly increase the probability of a move down toward the $78 support area, which coincides with the value area low and high-timeframe demand. Volume dynamics support this corrective outlook, with a lack of strong accumulation signals suggesting buyers are waiting at deeper value zones rather than defending mid-range prices.
This technical weakness for Solana comes amid mixed ecosystem news. On one hand, Step Finance announced it will shut down its Solana-based platforms following a January exploit that drained roughly $40 million, adding to cautious sentiment. On the other hand, Zora expanded onto the Solana blockchain with the launch of its new "attention markets" platform, signaling continued development.
Simultaneously, Sonic (S) is entrenched in an aggressive downtrend, characterized by a clear sequence of lower highs and lower lows. The token is trading near its yearly low and below the 0.618 Fibonacci extension level, with a lack of bullish volume signaling a high risk of continued downside. Each attempt at recovery has been met with selling pressure, reinforcing resistance zones and preventing any meaningful trend reversal.
The persistent bearish structure for Sonic suggests the path of least resistance favors further downside exploration toward new yearly lows. Market analysts note that until Sonic can reclaim a meaningful high-timeframe resistance level and attract significant bullish volume, any rallies are likely to be corrective retests rather than signals of a confirmed trend reversal.
