According to recent technical analysis, Solana’s bullish momentum has indeed reversed, with its price breaking a key upward trendline that had been in place since April. This breakdown signals a significant shift in market structure, pushing SOL to its lowest level since August and confirming increasing bearish pressure.
A Critical Technical Breakdown
The market structure for Solana has turned bearish following a decisive break below its multi-month upward trendline. This technical breakdown is accompanied by a bearish crossover on the MACD indicator and a pattern of lower highs and lower lows, all classic signs of selling pressure taking control.
The immediate and critical support level to watch is $155. This price represents the 61.8% Fibonacci retracement of the rally that stretched from $95 to $253. A breach of this level could accelerate the decline toward the next significant support zone near $129 For any hope of a bullish recovery, the market must see a sustained push back above the 200-day Simple Moving Average, which is located near $180. Reclaiming this level is essential to invalidate the current bearish trend.
The ETF Influence and Market Sentiment
The decline is particularly notable as it occurred despite the high-profile debut of spot Solana ETFs in the U.S., including products from major issuers like Bitwise, Grayscale, and VanEck. The presence of these ETFs demonstrates institutional interest, but their inflows have not been sufficient to counteract the prevailing selling pressure in the spot market in the short term. This disconnect highlights that ETF demand does not always translate linearly into immediate price support.
Navigating the Path Ahead
For traders and treasury managers, this new environment demands caution. The loss of a major bullish trendline often leads to elevated volatility and thinner liquidity, which can complicate the execution of large orders. The focus should now be on how the price behaves at the key Fibonacci levels.
The most crucial milestone in the near term is whether the $155 support level holds. A rejection from this zone could allow the market to establish a new consolidation floor. However, a breakdown could quickly open the path toward $129. For leveraged traders, these technical zones also represent areas with a high risk of cascading liquidations, which can amplify downward moves.
In summary, Solana’s trend has clearly changed in the short term. While the ETF landscape provides a long-term bullish narrative, the current technical picture is controlled by sellers. The market’s next move will be decided at the key support and resistance levels outlined, and a return of buyer confidence is contingent on reclaiming the 200-day moving average.
