Solana’s price has fallen sharply, dropping 41% from its all-time high of $295.83 on January 18. Currently, SOL trades at $171.81, signaling a major market shift.
Solana Price Drops 41% After Breaking Key Support
For the first time since 2023, SOL has broken below its ascending parallel channel, a key indicator of bullish momentum. This breakdown suggests that bears have taken control, increasing the likelihood of further declines.
Solana Breaks Multi-Year Trendline—What’s Next?
Since June 2023, Solana had been trading within an ascending parallel channel, where its price moved between two upward-sloping trendlines. This structure indicated a strong bullish trend, with higher highs and higher lows.
However, SOL has now fallen below the lower support line, signaling a bearish shift. When an asset drops below such a key level, it suggests selling pressure is overpowering buyers, leading to increased market uncertainty.
Additionally, Solana’s Elder-Ray Index has remained negative since January 27, currently sitting at -30.4. This indicator measures the strength of bulls and bears, and a negative reading confirms that bears are in control, increasing the risk of further price declines.
SOL Price Targets: $136 or a Rebound?
Bearish Scenario:
- If buying pressure weakens, Solana could drop to $136.62, according to Fibonacci Retracement levels.
- If bulls fail to defend this support, SOL may fall further to $120.72, a level last seen in September 2023.
Bullish Scenario:
- If demand surges, Solana could attempt to reclaim lost ground.
- A successful retest of the breakout line could push SOL above the channel and toward $220.58.
With uncertain market conditions, traders are watching closely to see if SOL will stabilize or continue its downward trend.
