The crypto market faced another correction in recent days, with only a few major digital assets avoiding the broader sell-off.
Solana (SOL) did not escape the downturn. Its price dropped by double digits over the past week, and some analysts warn that further short-term declines are possible.
What’s Next?
Earlier this month, analyst Ali Martinez observed SOL’s price action and noted that it has traded inside a clearly defined channel since February. He identified $98 as the channel’s upper boundary and $78 as the lower boundary. Martinez also suggested that a successful breakout above the upper boundary could trigger a rally, and he identified $88 as a key pivot point for that scenario.
SOL failed to break above the ceiling and currently trades near $84.50, reflecting a roughly 12% drop for the week. In a recent post on X, Martinez pointed out that SOL missed its bullish target and indicated the token could now fall toward the channel bottom around $78.
Another commentator, Ted, issued a warning that SOL’s RSI uptrend appears to have been lost. He said the price needs to hold the $82–$84 range to avoid further downside.
“A daily close below won’t be good for Solana,” he added.
Compounding bearish pressure, filings showed that Goldman Sachs fully exited its SOL ETF exposure during Q1 2026. Moves by major financial institutions can signal caution and negatively influence market sentiment.
Counterbalancing this, inflows into spot SOL ETFs have recently continued to exceed outflows, pointing to sustained institutional interest. Notably, the last major red day for SOL was April 30.
‘Zoom Out’
Despite the pullback, several analysts remain optimistic about SOL’s medium-term outlook. X user Trader Koala urged followers to “zoom out,” forecasting $135 as an eventual target.
Analyst SatoshiOwl also expressed a bullish view. While acknowledging that many expect further panic across altcoins and growing fear, they suggested the current environment could set the stage for a dramatic reversal led by a large bullish candle.
“I’m long on SOL here,” they concluded.
In summary, short-term signals point to downside risk toward the channel support near $78, particularly if SOL closes below the $82–$84 range on a daily timeframe. At the same time, continued spot ETF inflows and bullish views from some market participants leave open the possibility of a significant recovery if momentum shifts. Traders should watch the $78 support and $88 pivot closely for indications of the next meaningful move.