Solana (SOL) is retesting a make-or-break area that could set the stage for a major move at the start of next year. Some analysts have suggested that altcoin’s chart signals a bearish performance for the coming months.
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Solana Faces Another Rejection From Key Resistance
After hitting a three-week high of $130 on Sunday, Solana started the week with a 6.1% correction to the $122 area. The cryptocurrency recently breached below its macro support around the $120 zone, hitting an eight-month low of $116 in mid-December.
Since then, the altcoin has been trading between the $120-$126 mark, attempting to break out of the local resistance multiple times but ultimately being rejected after each retest.
SOL’s price surged around 5.6% toward during Sunday’s broader market bounce, trying to build a base below the crucial resistance level before plunging after the early Monday correction.
Amid this performance, market observer Crypto Jobs pointed out that Solana had broken out of a six-week falling wedge, which could target the $144-$146 area if momentum holds and price confirms a retest of the breakout.
However, the star-of-week pullback has momentarily sent SOL below the pattern’s upper boundary. Analyst Man of Bitcoin also highlighted that the cryptocurrency had broken above a one-month downtrend line, which suggested an initial move toward the $129-$130 area.
The analyst explained that “holding above the broken trendline is key to maintaining upside momentum,” but noted that as long as the price remains below $146, a scenario where price is headed for one more low, around the $100-105 horizontal support, remains likely.
Following the Monday rejection, he affirmed that “it could be that wave-4 is already complete. A decisive break below the trendline would confirm this further.”
SOL’s Higher Timeframe Chart Shows Troubling Signs
Market watcher Elite Crypto affirmed that Solana “doesn’t look very strong” on the higher timeframe, pointing to a multi-year bearish pattern potentially forming on SOL’s chart.
According to X analysis, the cryptocurrency has been developing a Head and Shoulder pattern since early 2024, with the neckline sitting around the $105 area in the weekly timeframe.
The char shows that left shoulder formed during the Q1 2024 rally, while the head and right shoulder formed during its rally to its latest all-time high (ATH) in Q1 and Q3 2025 breakouts, respectively.
“If $SOL loses the $105 support then the price could move down to the $75–$51 range and this phase may last until mid 2026,” the investor detailed, adding that “after this period, the overall trend for SOL can turn bullish and set up a better move ahead.”
Similarly, Henry from Lord of Alts suggested that Solana has formed a double top formation with the neckline around the current levels instead of a Head and Shoulders pattern.
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Per the analyst, “We put in a clean double top, rolled over, and now price is going back toward a zone that’s acted as real support before.” If the altcoin fails to hold the current support, its price could retrace toward the $60 mark, the chart shows.
Moreover, he added that SOL’s price could also risk a drop to the $35 area in the coming months as there’s “a big gap below that market hasn’t dealt with yet.”
Featured Image from Unsplash.com, Chart from TradingView.com
