Short Description
Solana (SOL) has plummeted to a two-year low, with analysts warning of further potential decline to $30 amid a confirmed head-and-shoulders pattern.
Read Time
3 minutes, 15 seconds
Main Article
Solana’s native token, SOL, is facing intense downward pressure, having plunged 38% in the past month to a two-year low of $67. Technical analysts are sounding alarms, pointing to a confirmed bearish head-and-shoulders pattern on multiple timeframes that suggests the cryptocurrency price could drop significantly further, with targets extending as low as $30. This pattern, a classic chart formation signaling trend reversal, saw SOL break below its critical neckline support at $120 in late January. The measured move from this breakdown points toward a potential decline to the $45-$57 range, indicating a possible 32% drop from current levels. The Solana price analysis reflects a loss of over 72% from its January 2025 peak near $295, underscoring a severe and persistent downtrend.
Despite the grim technical outlook, some on-chain metrics offer a glimmer of hope for a near-term stabilization. SOL’s price crash last week found a temporary footing at a key support zone around $75, which aligns with the lowest boundary of its Market Value to Realized Value (MVRV) deviation bands. Historically, when SOL’s price has reached or dipped below this band—as seen in March 2022 and December 2020—it has often preceded a substantial price rebound. This Solana support level represents the average price at which current holders last moved their coins, suggesting that at $75, the asset may be entering an oversold territory where long-term holders are less inclined to sell.
However, the market remains on high alert. The precedent set during the FTX collapse in November 2022 serves as a cautionary tale; back then, SOL’s price deviated sharply below this same MVRV support band, leading to an additional 70% collapse before finally bottoming. Therefore, while the $75 zone is a critical defensive line for bulls, a decisive break below it could trigger the next wave of selling, potentially validating the lower head-and-shoulders pattern targets and accelerating the decline toward $42 or even $30. Traders and investors are now closely watching this pivotal level to gauge whether Solana can stage a recovery or if a deeper correction is imminent.
Short Summary
Solana (SOL) faces bearish pressure with a confirmed head-and-shoulders pattern targeting prices as low as $30. While key on-chain support at $75 offers hope for a bottom, a break below could accelerate losses. The critical zone will determine if SOL stabilizes or continues its sharp correction from all-time highs, making it a focal point for crypto market watchers.
