Solana faces mounting technical pressure even as on-chain fundamentals show pockets of strength. Technical outlook - AMBCrypto reported just over a week ago that a clear head-and-shoulders formation on Solana’s weekly chart — confirmed by a Fibonacci extension — points to a downside target near $47. The weekly chart’s structure shifted bearish after a retest of the 78.6% retracement at $252.90, and the subsequent rejection put a $47.9 objective back on the table (source: SOL/USDT on TradingView). - Momentum tools back that view: the weekly DMI flagged a strong bearish trend and moving averages remain tilted down, reinforcing the medium-to-long-term downside bias. - On the daily timeframe, imbalances sit around $95 and $110, while the $120–$127 zone is identified as a bearish order block and an important resistance area. A bounce toward those levels is possible, but the higher SOL rallies, the higher the probability of rejection from those supply zones. - In the short term, price action is carving out a range between $76.60 and $89.80, with the mid-range pivot around $83.20. Traders should watch these levels closely: a decisive break above the daily swing high at $128.34 would be needed to flip the broader trend bullish, while a break below the $76 range low would put the sub-$50 targets back in play. On-chain and ecosystem context - Despite the technical weakness, several on-chain and institutional signals suggest continued interest in Solana. The RWA (real-world assets) market cap on Solana climbed past the $1 billion mark, and Total Value Locked (TVL) hit fresh highs — indicators of growing network adoption and capital inflows. - TradFi integration also showed progress: Citi completed an internal proof-of-concept using Solana, highlighting that established financial players are experimenting with the chain. - That said, rising on-chain activity has been accompanied by a memecoin/speculative boom. High activity and rising SOL prices driven by token frenzy are not necessarily confirmation of a healthy bullish trend and may mask underlying distribution or leverage-driven dynamics. Trading implications - Short-term traders may look to sell into rallies that reach the $95–$127 supply areas given the prevailing downtrend. Key levels to monitor: support range $76.60–$89.80 (pivot $83.20), the critical bullish threshold $128.34 (daily swing high), and the downside trigger below $76 that would accelerate downside toward the previously noted sub-$50 targets. Disclaimer The information presented does not constitute financial, investment, trading, or other advice and reflects the writer’s opinion only. AMBCrypto’s content is informational and should not be interpreted as investment advice. Cryptocurrency trading is high risk; readers should do their own research before making decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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