Solana Eyes Deeper Correction As Bearish Pattern Confirmation Targets $40

Overview

Solana is currently facing significant downward pressure as it trades at multi-year lows. Analysts have expressed concerns about the altcoin’s trajectory, with some lowering their end-of-year targets and others warning of a potential correction of up to 50%. A confirmed bearish pattern has emerged, further complicating the outlook for Solana.

Solana’s Recent Performance

On Wednesday, Solana retraced nearly 10% in daily trading, hitting a two-year low of $90. The cryptocurrency had previously fluctuated between $120 and $250 since February 2024, demonstrating resilience by retesting and bouncing off its macro support multiple times. However, over the weekend, Solana lost this crucial support area, closing January at approximately $105.

As the month began, Solana attempted to hold the psychological barrier of $100 and reclaim the $105 resistance as a support level. Unfortunately, the broader market movement, which also saw Bitcoin reaching multi-year lows, pushed Solana below its bull market lows from the previous year. Market observer Alex Clay noted that Solana’s chart now reflects a confirmed bearish formation, indicating that the altcoin has lost an important support zone.

The cryptocurrency’s chart reveals a macro Head and Shoulders (H&S) pattern on the weekly timeframe, which has been developing since early 2024. The left shoulder was formed during the Q1-Q2 2024 run, while the head developed during the late 2024 to early 2025 rally, which led to Solana’s all-time high. The neckline of this bearish formation is situated around the $105 mark, and the right shoulder began to develop after a Q3 2025 rally. This pattern was confirmed during the recent market crash, and if Solana closes the week under $105, the neckline could become a resistance level.

Clay warned that the bearish pattern’s first target is around the $42 mark, indicating a potential 55% correction from current levels.

Analysts’ Concerns

Other market analysts have echoed concerns about Solana’s future performance. Sjuul from AltCryptoGems remarked that the Solana chart evokes a “truly panic-inducing feeling,” indicating a vast “no man’s land” below current levels. Similarly, Crypto Tony noted that after breaking the $100 low “with conviction,” the next significant support for Solana may be around $50. He views a correction toward this area as “obvious,” especially since Bitcoin has yet to find a bottom.

Altcoin Sherpa pointed out that Solana has also lost its 200-Week Exponential Moving Average (EMA), which he considers a critical support area before reaching $75 or lower. He emphasized that Solana tends to experience strong price reactions due to its association with the gaming sector, but this also means that corrections can be more severe.

Additionally, a major financial institution has revised its end-of-year target for Solana. Standard Chartered has reduced its near-term forecast from $310 to $250, citing the time required for the network’s next major use case to scale. However, the bank has raised its long-term projections, predicting Solana could reach $2,000 by 2030 as it evolves beyond its current use cases.

From author

The current situation surrounding Solana illustrates the challenges that cryptocurrencies can face in a volatile market. The confirmed bearish pattern and analysts’ warnings highlight the importance of monitoring market sentiment and technical indicators. As Solana navigates this difficult phase, the cryptocurrency community will be watching closely to see how it responds to these pressures.

Impact on the crypto market

• Solana’s decline may influence investor confidence in altcoins, particularly during periods of market uncertainty.
• The confirmed bearish pattern could lead to increased selling pressure, affecting overall market sentiment.
• A potential correction to $42 could set a precedent for other cryptocurrencies facing similar bearish patterns.
• Analysts’ lowered targets may result in cautious trading behavior among investors and traders.
• The revision of Solana’s end-of-year target by Standard Chartered may impact institutional investment strategies within the crypto space.