Solana (SOL) is currently exhibiting bearish signals on its daily price charts, with analysts projecting a potential decline to around $120. The emergence of a bearish engulfing pattern suggests that, should the current downward momentum persist, further price reductions may ensue. Additionally, a head and shoulders formation, a well-recognized indicator of bearish trends, has appeared on the one-day timeframe. A break below the $140 support level accompanied by increased trading volume could confirm further downward movement. Based on this pattern, the immediate lower target is approximately $126, which lies within a key liquidity zone, while a demand zone between $95 and $120 may also be tested in the coming weeks.
Conversely, a sustained close above the $157 resistance level would invalidate the bearish outlook. Solana’s price movements remain closely correlated with Bitcoin (BTC), which is currently testing support near the $100,000 mark. Should Bitcoin experience continued weakness, it is likely that selling pressure on Solana will intensify correspondingly.
Despite these technical signs of weakness, on-chain metrics present a more optimistic perspective. According to a recent Glassnode report, Solana’s Network Value to Transactions (NVT) ratio has fallen below 10, reaching its lowest point since February 2025. This indicates that network activity remains robust relative to market valuation, highlighting favorable long-term prospects even amid price fluctuations. Furthermore, the recent reversal in net outflows of Solana from exchanges signals growing investor confidence, as accumulating SOL tokens off-exchange often suggests preparations for future price appreciation. Notably, the largest net withdrawal of 4.6 million SOL occurred on May 28; however, subsequent price declines have triggered renewed inflows back onto exchanges.
In summary, while Solana is experiencing short-term price volatility with bearish technical indicators, the underlying on-chain data underscores the network’s strength and sustained investor interest. These factors collectively suggest positive potential for Solana’s future despite the current downward pressure. This analysis is intended for informational purposes only and should not be construed as investment advice. Readers are encouraged to conduct their own research before making any investment decisions.
Source: binance
