Solana Jumps 6.7%, But Analysts Warn of Potential Drop to $140—What’s Next?

Solana (SOL) was trading $186.94 at the time of writing, reflecting a 6.73% increase in the last 24 hours, despite recording a 13% decline over the past week. 

Trading activity has risen significantly, with the 24-hour trading volume reaching $5.43 billion, highlighting increased market participation, according to Coingecko. However, analysts caution that bearish pressures could push the price lower into the $160-$140 range before further upward movement.

Technical Analysis Shows Mixed Momentum

The Parabolic SAR indicator shows dots below the price, signaling a bullish trend. This indicates upward momentum, but the most recent red candlestick points to slowing momentum as the price briefly retraced after encountering resistance near $190.

The Stochastic RSI currently reads 46.79 (blue) and 68.59 (orange), showing momentum cooling off after reaching the overbought zone. This downward shift signals a possible bearish crossover, which could lead to a price correction toward the $185 level or lower in the short term.

The Klinger Oscillator, reading 452 against a signal line of 363, reflects ongoing bullish momentum. This suggests the potential for a retest of the $190 resistance, but a failure to maintain this level may push the price to retest support around $180.

Analyst Expects Further Downside Before Recovery

Crypto analyst Hov has projected that Solana may decline further into the $160-$140 range as part of its current market cycle. Emphasizing the importance of patience as the trend develops, Hov stated,

“The move off the low was three-waved and contained within the corrective channel.”

The analyst also pointed out that the current price action aligns with earlier predictions of a dip to $170, a key level noted in prior updates. While this short-term decline may complete the second wave of the fifth market cycle, Hov suggests this setup could support higher price targets in the longer term once the corrective phase concludes.

On-Chain Data Reflects Bearish Sentiment Despite Volume Growth

Santiment data shows that Solana’s trading volume rose by 90%, climbing from 1.54 billion SOL to 4.35 billion SOL over 24 hours. This surge coincides with the weighted sentiment dropping to -0.18, reflecting a predominantly bearish outlook among market participants.

The combination of rising trading volumes and negative sentiment suggests heightened sell-side pressure, as traders actively respond to their concerns. Such activity highlights that market participants remain cautious, even as trading volume grows.

With mixed technical indicators and bearish on-chain sentiment, Solana’s short-term trajectory remains uncertain, with both support levels and resistance levels under close watch.

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