Solana Drops 61% From Peak, Faces Bearish Pressure

Solana (SOL) has been under significant selling pressure, with the price failing to reclaim key resistance levels after weeks of market volatility. The cryptocurrency dropped below $180, a crucial support level that previously held firm, leading to a dominance of bearish sentiment. Speculation about a potential bear market for SOL and the broader altcoin sector has been rising.

Despite the negative outlook, there is a glimmer of hope for Solana bulls. Top analyst Ali Martinez shared a technical analysis revealing that SOL is forming a bullish channel in the short-term time frame. This pattern suggests that if Solana holds within this formation, a surge to higher price levels could follow. For this bullish scenario to play out, SOL must hold the lower trendline of the channel and push toward higher resistances. A breakout from this pattern could signal a strong recovery, potentially reversing the downtrend that has dominated the market for weeks. However, if Solana fails to maintain this structure, the risk of further downside remains high. The next few days will be crucial in determining SOL’s short-term direction.

Solana has faced relentless selling pressure since hitting its all-time high of $261 in January, now down 61% from that peak. As hopes for a massive bull run fade, speculation around a potential bear market continues to grow. The broader macroeconomic environment remains unfavorable, with trade war fears and economic uncertainty pushing down not just the crypto market but also the broader financial markets.

Investors are now looking for signs of a reversal, and technical indicators suggest a potential short-term recovery. Martinez’s analysis reveals that Solana is forming a bullish channel and is eyeing a climb from the channel’s base to the upper resistance at $140. If this pattern holds, SOL could push toward $140 and even higher levels, signaling a relief rally. For this bullish outlook to materialize, Solana must maintain its current trendline support and break through key resistance levels. If SOL fails to hold this channel, it could face further downside, reinforcing fears of a prolonged bear market. The next few days will be crucial in determining whether Solana can reclaim momentum or continue its downward trajectory.

Solana (SOL) is currently trading at $129, following days of consolidation between $136 and $111. The price action remains uncertain, with bulls struggling to regain control after weeks of selling pressure. For a potential reversal, SOL must break above the $140 resistance level and push toward $160, a key level that would signal a shift in market structure. If bulls successfully reclaim these price points, a stronger recovery phase could begin, potentially attracting new buyers back into the market. However, if Solana fails to hold the $125 support, it could trigger a wave of selling pressure, sending the price toward lower demand zones. A break below this level could expose SOL to a drop toward $110 or even lower, reinforcing concerns that the current downtrend is far from over.

The next few trading sessions will be crucial in determining whether Solana can reclaim momentum or if further declines are ahead. The cryptocurrency market remains highly volatile, and the outcome for Solana will depend on its ability to hold key support levels and break through resistance. Investors will be closely watching these developments to gauge the potential for a recovery or further declines.