Solana Price Drops 31% From Highs, Analysts Eye $105 Support

Solana's price has been on a downward trend, consolidating after reaching recent highs around $168. As the market cools, traders are speculating whether this is a continuation of downward pressure or the start of a deeper correction before a significant rebound.

Some analysts predict that the price of SOL may drop to $105. However, if bear trap signals are confirmed, a rally towards $260 remains a possibility. The recent decline from $168 has brought Solana's price into a critical technical decision zone. According to Analyst Batman, the current setup resembles a typical bear trap. According to his model, Solana's price may briefly dip to $105 before sharply reversing. After the potential shakeout, his chart indicates a steep V-shaped recovery to an ultimate upside target of around $260. The support at $105 aligns with long-term pivot levels and demand zones, which have historically caused significant rallies, such as at the beginning of 2024. In the short term, the area between $135 and $140 is acting as a buffer, with weak sentiment.

Not all analysts agree on an immediate rebound. Man of Bitcoin emphasizes a corrective wave pattern ratified by Fibonacci levels. According to his analysis, Solana's price may still be completing a downward ABC correction. Important support areas will be at the 0.618 level around $122.77 and the 0.786 zone around $109.84. The structure holds as long as Solana's price stays below its recent swing high near $147. Should the price lose the $130 leg in volume, it may validate the C-wave leg and intensify the move to the $105 level. His opinion corresponds to bearish MACD alignment, which is not yet demonstrating a bullish divergence on higher time frames.

In addition to price action, momentum and volatility indicators are sending important signals. The daily RSI at 35 indicates that the asset is close to being oversold. The 6-hour chart stochastic RSI is beginning to turn up at the lower limit, implying the possible re-entry of buyers. Bollinger Bands have been squeezing, and the narrowing volatility has pushed the squeeze. Should Solana's price break higher out of this compression, levels between $156 and $260 come into focus. Whale wallets have remained notably active as blockchain data revealed significant long-term staking and accumulation below the $140 level. While retail traders appear cautious, large holders seem to be preparing to adjust their positions. Open interest is stagnating, yet should a breakout happen beyond this zone, the momentum can change rather soon.

Analyst BitGuru is tracking a W-pattern structure that may confirm a bullish reversal if Solana's price holds above $139.55. His chart indicated a completed double-bottom pattern with an upside breakout at $168.49 and a clean retest on the neckline. Provided the support at $139.55 holds, BitGuru expects a rise of up to the $156 level as the pattern unwinds. This target is also consistent with the previous retracement Fibonacci level at 0.382. The Bollinger Bands in the 4-hour chart support this setup with the price compression around the neckline. BitGuru further argues that if momentum shifts upward from this level, Solana's price could invalidate the bearish wave structure and begin a sustained recovery. This would open up the way once again to the level of $200 and eventually to $260 in the longer run. For now, a breakdown below $139.55 might confirm the bear trap prediction and indicate a flush to $105. However, a reclaim above $150 would support SOL's price breakout of the $156 level and beyond.