Current price forecasts for SOL indicate a potential decline to the $120 level. However, demand data may mitigate this drop.
Technical Analysis of SOL
The daily chart of SOL has formed a bearish pattern known as 'head and shoulders', signaling a downward reversal. A breakdown below the $140 neckline, confirmed by a volume spike, could lead to further downside. The expected target for this drop is around $126, supported by the liquidity zone. However, the daily demand zone is outlined between $95 and $120, which could be tested in the coming weeks.
Onchain Data Supports Recovery
Despite the bearish outlook, onchain data for Solana continues to indicate strong potential. According to Glassnode, the Network Value to Transactions ratio (NVT) has dropped below 10, the lowest score since February 2025. This suggests strong network usage relative to market value. Additionally, Exchange data shows a consistent outflow of SOL, indicating rising investor confidence and asset accumulation.
Conclusion
Thus, while forecasts indicate a potential drop to $120, demand support and positive network data may foster recovery.
In summary, despite potential price declines, strong demand zones and favorable onchain metrics could contribute to Solana's market resilience.
