INSUBCONTINENT EXCLUSIVE:
Key takeaway:SOL (SOL) projects a bearish outlook on the daily chart after forming a bearish engulfing, and if the trend holds, SOL price
On the 1-day time frame, SOL shows a head-and-shoulders pattern, which is a bearish reversal signal
A breakdown below its $140 neckline level, confirmed by a volume spike, could lead to a bearish continuation.Solana 1-day chart
Source: Cointelegraph/TradingViewThe downside target from the head-and-shoulders pattern is around $126, supported by the immediate
However, the daily demand zone is outlined by the order block between $95 and $120 (yellow box), which could be tested over the next few
However, Solana has shown a strong correlation with Bitcoin throughout the quarter
With BTC potentially retesting support near the $100,000 level, increased sell-side pressure could lead to further correction for
SOL.Related: SOL price rally to $200 brewing, but 3 key catalysts must happen firstDespite a bearish outlook, onchain data for Solana
continues to paint a bullish picture
According to Glassnode, the Network Value to Transactions Ratio (NVT) has dropped below 10, its lowest score since February 2025
Source: GlassnodeAdditionally, the Exchange Net Position Change chart reveals consistent SOL withdrawals from exchanges, a trend that has
recently begun to rise again (i.e., SOL is moving back into exchanges)
This indicates growing investor confidence, as holding SOL off exchanges often signals accumulation for future gains
The data shows a significant net outflow, with peaks of -4.6 million SOL on May 28, followed by a recent uptick in deposits, which falls in
The stable NVT and increasing exchange outflows highlight robust network activity and investor accumulation, overshadowing short-term price
Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
