SOL Price Drop to $120 Likely, but a Silver Lining Remains

After forming a bearish engulfing, SOL displays a gloomy picture on the daily chart. If the trend continues, the price of SOL may drop to $120.

SOL displays a head-and-shoulders pattern on the 1-day time period, which is a bearish reversal indicator. A bearish continuation might result via a collapse below its $140 neckline mark, which would be verified by a volume rise.

The immediate liquidity zone supports the head-and-shoulders pattern's downside goal of about $126. The order block between $95 and $120 (yellow box), however, delineates the daily demand zone and may be tested in the coming weeks. 

If the price closes over the $157 barrier level on a daily basis, the bearish pattern for SOL may be deemed incorrect. Nonetheless, during the quarter, Solana has demonstrated a high association with Bitcoin. More sell-side pressure may cause SOL to decline more, as BTC may retest support close to the $100,000 mark.

Solana recovery is supported by onchain data
Onchain data for Solana keeps showing a strong picture despite a pessimistic prognosis. The Network Value to Transactions Ratio (NVT) has fallen below 10, which is the lowest level since February 2025, according to Glassnode. Even though SOL's price fluctuates below $150, this indicates strong network usage in relation to its market value, which is a crucial indicator of long-term potential. 

Furthermore, the Exchange Net Position Change chart shows that SOL has been withdrawing from exchanges on a regular basis; this trend has just started to increase once more, indicating that SOL is returning to exchanges. Since keeping SOL off exchanges frequently indicates accumulation for future returns, this suggests growing investor confidence. With a peak of -4.6 million SOL on May 28 and a subsequent increase in deposits, the data indicates a notable net outflow that corresponds with the current price decline.

The price of Solana has fluctuated, falling from a peak of $295 in early 2025, but the onchain measures point to underlying strength. Short-term price bearishness is overshadowed by the steady NVT and rising exchange outflows, which demonstrate strong network activity and investor accumulation.