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The price of Solana continues the higher trend in general, but the short-term risks have escalated. The SOL has been forming a bullish trend since the beginning of the month, a pattern that often precedes a pullback.
Despite strong investor participation, this setup points to a potential downside that could undermine recent bullish efforts.
The carriers of Solana look out
The activity on the chain shows a strong growth in the network. Since the beginning of the month, the number of addresses that make transactions on Solana has increased sharply. At its peak, more than 8 million new addresses joined the network in a single 24-hour period.
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This increase indicates The big question of SOL. New addresses usually bring new capital, increasing liquidity and network usage. This growth reflects Solana’s expanding environmental appeal, driven by DeFi activity, meme currencies, and high-production applications that attract new participants.
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Although network adoption is growing, overall momentum tells a different story. The stock market position change data indicates that the current holders exert a stronger influence on the price movement. Buy pressure from long-term participants weakened, offsetting the impact of new capital flows.
As buying momentum wanes, selling pressure begins to dominate. This change indicates that Established SOL holders They reduce exposure or prepare to sell. When old supply exceeds new demand, weak prices often follow, increasing the likelihood of a collapse of the current structure.
The price of SOL is looking for a correction
The price of Solana is trading near $144 at the time of writing, and it is moving in a rising wedge that has formed in recent days. This bearish continuation pattern projects a potential 9.5% downside, which puts the downside target near $129 if the structure continues below.
The expected decline is consistent with weak momentum indicators. from likely to pay Confirmed collapse of SOL towards $136 initially. Losing this support will expose the level of $130, where buyers can try to keep the price in a broader market caution.
However, the bearish scenario is not guaranteed. If investor sentiment improves and selling pressure decreases, The SOL index can recover From the lower trend line of the low. A move above $146 would signal renewed strength. Further upside could push Solana towards $151, invalidating the negative outlook.
