Solana Risks $48 Drop if $80 Daily Close Fails, Analysts Warn
Solana (SOL) faces a critical technical juncture: analysts warn a daily close below $80 could accelerate declines toward a $48 target tied to a completed head-and-shoulders pattern. Technical breakdowns show SOL breached multiple supports and sits in a precarious zone, with $80 identified as the last major daily support. Analysts outline support bands at $50–$60 (primary accumulation area) and a worst-case pattern target near $48. On-chain metrics are mixed—MVRV is approaching historical lows (suggesting potential accumulation) while network activity and developer activity remain robust. Spot SOL ETFs have continued to attract inflows, providing institutional buying that may counteract technical selling. Traders are advised to watch the $80 level closely and employ disciplined risk management: position sizing, stop-losses below key supports, and time-horizon alignment. The report highlights that a breach could reverberate across altcoins given Solana’s role as a major layer-1, while a defended $80 could restore confidence. This note is informational and not trading advice.
Bearish
The article emphasizes a clear technical risk: a completed head-and-shoulders pattern and multiple breached supports with $80 as a critical daily close level. Technical traders rely on daily closes to confirm momentum shifts; a decisive close below $80 would validate bearish structure and likely invite accelerated selling toward the $48 pattern target and the $50–$60 accumulation band. Although on-chain metrics (MVRV low, sustained network and developer activity) and continued spot ETF inflows provide fundamental support and could attract longer-term accumulation, these factors often act on a slower time horizon and may not prevent short-term technical liquidation. Historically, major altcoins that broke key supports after similar chart patterns experienced steep short-term drawdowns (e.g., altcoin drops during 2022–2023 cycles) before fundamentals and inflows supported recovery. For traders: expect higher volatility, possible short squeezes if $80 briefly breaks then regains, and increased correlation risk across layer-1 tokens. Short-term outlook is bearish until $80 is reclaimed decisively; medium-to-long-term recovery remains possible if on-chain metrics and ETF demand persist, but entry timing should consider technical confirmation and strict risk controls.