Solana Faces 15% Price Correction Amid Bearish Signals

Solana (SOL) is currently facing a potential price correction to $120 due to bearish technical signals. The head-and-shoulders pattern on SOL’s daily chart indicates a possible downturn, with the neckline positioned near $140 acting as a critical support level. A decisive breakdown below this point could trigger a further decline toward the $120 target zone, which aligns with a significant liquidity area and may attract buyer interest and potentially stabilize the price.

The formation of a bearish engulfing candle reinforces the negative momentum, signaling sellers’ dominance in the short term. However, the bearish scenario could be invalidated if SOL manages a daily close above the $157 resistance, which would indicate renewed buying strength and a possible reversal of the downtrend.

Solana’s price movements have shown a strong correlation with Bitcoin’s performance throughout the recent quarter. Given Bitcoin’s potential retest of support near the $100,000 mark, any increased sell-side pressure on BTC could cascade into SOL, amplifying its downward trajectory. This interdependence highlights the importance of monitoring broader market trends when assessing Solana’s price outlook.

Despite bearish technical signals, Solana’s onchain data presents a more optimistic narrative. The Network Value to Transactions (NVT) ratio, a key metric assessing network usage relative to market capitalization, has fallen below 10—the lowest since February 2025. This decline indicates heightened transactional activity on the Solana blockchain, suggesting robust utility and engagement despite price fluctuations.

Additionally, the Exchange Net Position Change data shows a sustained trend of SOL withdrawals from exchanges, a behavior typically associated with investor accumulation and confidence. Although recent weeks have seen a slight uptick in SOL deposits back to exchanges, this movement corresponds with the current price dip and does not negate the broader accumulation trend.

The persistent net outflow of SOL tokens from exchanges, peaking at -4.6 million SOL on May 28, reflects a strategic shift by holders toward long-term storage rather than immediate selling. This accumulation pattern, combined with stable network usage metrics, suggests that investors remain bullish on Solana’s future prospects despite short-term price corrections.

Traders should closely monitor the $140 neckline support and the $157 resistance level to gauge the next directional move for SOL. The interplay between technical patterns and onchain fundamentals provides a comprehensive framework for decision-making. While the head-and-shoulders pattern warns of potential downside, the strong network activity and investor behavior offer a counterbalance that could limit losses and set the stage for recovery.

Solana’s near-term price action is shaped by bearish technical patterns pointing toward a possible decline to $120. However, robust onchain data—including a low NVT ratio and sustained token accumulation—indicates resilient network fundamentals and investor confidence. Market participants should consider both technical signals and blockchain metrics to navigate SOL’s evolving landscape effectively.