Solana (SOL) is exhibiting technical indicators suggesting a potential short-term price correction, while underlying onchain metrics point to sustained long-term investor confidence.
A bearish head-and-shoulders pattern has formed on SOL’s daily chart, indicating a possible downturn. The critical support level to watch is $140. A decisive break below this neckline could trigger a decline towards the $120 price target.
SOL’s price trajectory remains closely tied to Bitcoin’s performance. A retest of Bitcoin’s $100,000 support level could exacerbate downward pressure on Solana, amplifying the potential correction.
Despite the bearish technical signals, key onchain data presents a contrasting picture of underlying strength. Solana’s Network Value to Transactions (NVT) ratio is declining, signaling robust network usage and healthy transactional activity relative to its market capitalization even amidst price volatility.
Further bolstering the case for long-term resilience is the Exchange Net Position Change data. Sustained withdrawals of SOL from exchanges indicate ongoing investor accumulation, reflecting confidence in the asset’s future prospects and a preference for holding over selling.
Traders are advised to closely monitor key technical levels. The $140 support and $157 resistance levels are crucial for determining SOL’s next significant price move. Market participants are urged to balance these technical warnings with the fundamentally positive onchain signals.