Solana Bearish Formation Hints At Major Correction Until Mid-2026 – Here’s The Target

Overview

Solana (SOL) is currently experiencing a critical phase, retesting a key support area that could influence its price trajectory in the coming months. Analysts have expressed concerns about potential bearish patterns emerging in Solana’s chart, indicating a possible major correction ahead.

Current Market Situation

After reaching a three-week high, Solana faced a notable correction, dropping approximately 6.1% to the $122 area. This decline followed a breach below its macro support around the $120 zone, with the cryptocurrency hitting an eight-month low of $116 in mid-December. Since then, Solana has been fluctuating between the $120 and $126 range, making multiple attempts to overcome local resistance but facing rejections after each effort.

During a broader market bounce, SOL’s price surged approximately 5.6%, aiming to establish a base below crucial resistance levels. However, the early correction following this bounce has temporarily pushed SOL below the upper boundary of a six-week falling wedge pattern. Market observer Crypto Jobs noted that this breakout could target the $144-$146 area, contingent on momentum and a confirmed retest of the breakout.

Another analyst, Man of Bitcoin, pointed out that Solana had breached a one-month downtrend line, suggesting a potential move towards the $129-$130 area. However, he emphasized the importance of maintaining momentum above this trendline. Should SOL remain below $146, the possibility of a further decline towards the $100-$105 horizontal support remains plausible. Following the rejection on Monday, he indicated that a decisive break below the trendline could confirm a bearish scenario.

Higher Timeframe Analysis

Market watcher Elite Crypto has raised concerns regarding Solana’s performance on higher timeframes, suggesting the emergence of a multi-year bearish pattern. Specifically, the cryptocurrency appears to be forming a Head and Shoulders pattern with the neckline positioned around the $105 area on a weekly basis. The left shoulder formed during a rally in Q1 2024, while the head and right shoulder developed during the rallies to its latest all-time high in Q1 and Q3 2025, respectively.

If Solana loses the critical $105 support, it could lead to a price decline towards the range of $75 to $51, with this bearish phase potentially extending until mid-2026. Following this period, there may be a shift towards a bullish trend, setting the stage for future gains.

Additionally, another analyst, Henry from Lord of Alts, proposed that Solana has formed a double top formation, with the neckline around current levels. He warned that if Solana fails to hold the current support, it could retrace to the $60 mark, and there is also a risk of a drop to the $35 area in the upcoming months, as there remains a significant gap below that the market has yet to address.

From author

The current technical analysis of Solana indicates a precarious situation, with multiple analysts pointing towards bearish patterns that could lead to significant price corrections. The emphasis on key support levels and resistance areas highlights the volatility and uncertainty surrounding this cryptocurrency. As traders and investors navigate these signals, it is essential to remain vigilant about potential market movements.

Impact on the crypto market

• Solana’s performance could influence investor sentiment towards altcoins, particularly if bearish patterns materialize.
• A significant drop in Solana’s price may lead to increased volatility in the broader cryptocurrency market.
• The potential for a major correction in Solana could prompt traders to reassess their positions and risk management strategies.
• Observations of support and resistance levels in Solana may provide insights into market trends affecting other cryptocurrencies.
• The formation of bearish patterns in Solana could lead to a cautious approach among investors in the crypto space.