Key insights:
Sol (SOL) is indicating a bearish trend on the daily chart, having formed a bearish siege. If this pattern continues, the price of Sol may drop to around $120.
On the one-day time frame, Sol appears to be revealing head and shoulder patterns, which typically signal bearish trends. A drop below the neckline level of $140, especially noted during volume spikes, could lead to further bearish movement.
The target for potential downside based on the head and shoulder patterns is approximately $126, supported by nearby fluidity zones. However, there’s a notable demand zone marked in order blocks between $95 and $120, which might be tested in the weeks ahead.
The bearish outlook could be invalidated if the price rises above $157 for one day. Yet, it’s worth noting that Solana has maintained a strong correlation with Bitcoin this quarter. Increased selling pressure could lead to further declines in SOL, particularly as BTC approaches $100,000 and re-evaluates its support levels.
ONCHAIN data offers a glimpse of Solana’s recovery.
Notwithstanding the bearish sentiment, on-chain data for Solana offers a more optimistic view. GlassNode reports that the Network Value to Transaction Ratio (NVT) has hit its lowest point since February 2025, dropping below 10. This suggests a solid network usage relative to its market value, which could indicate long-term potential, even though the price of Sol remains under $150.
Furthermore, the Exchange Net Position Change Chart shows a consistent outflow of SOL from exchanges, hinting at rising trust among investors. This behavior, where SOL is frequently withdrawn, is indicative of accumulation aimed at future profits. Notably, there was a significant net outflow peaking at -4.6 million SOL on May 28, followed by an increase in deposits aligned with the recent price dip.
While Solana’s prices have been volatile, dropping from a high of $295 in early 2025, on-chain metrics reflect underlying strength. The stable rise in NVT and outflows from exchanges showcase active network engagement and investor accumulation, which could skew perspectives on short-term pricing.
This article does not constitute investment advice. All financial decisions come with risks, and readers are encouraged to conduct their own research.
