Solana (SOL) : 10% Surge or 30% Drop ?

At the time of writing, Solana (SOL) is trading around $107.50, after surging by over 10% from $97 within 24 hours.

Solana (SOL) price witnessed a 10% surge in the past 24 hours, reaching $107.50 at the time of writing.

However, technical analysis and on-chain data highlight the possibility of a 30% drop for SOL in the short term.

Solana failed to break its crucial horizontal support of $114 on April 6, a level that had previously acted as a price reversal or bounce point.

Solana broke its crucial horizontal support of $114 on April 6, 2025. Historically, this level had acted as a price reversal or bounce point. However, this time, the pattern failed, paving the way for further decline.

Indeed, if SOL remains below $114, historical trends indicate a potential drop of 30%, which could bring it back to its next support level at $77.

Currently, SOL is trading below the 200-day moving average on the daily chart, signaling a strong downtrend with continuous downward momentum.

If Solana fails to reach $135, it will continue its drop to $80-77.

On-chain metrics also confirm the bearish sentiment among traders.

Coinglass data shows that traders hold more short positions than long positions in the market, with $85 million in short positions built at the $113.10 resistance level. This suggests that bears currently dominate this asset.

In summary, Solana could see an increase in the coming days up to $120 to liquidate shorts and then trend back downwards.

However, these short and long positions are likely to be liquidated once the price significantly moves in either direction. Hence, the support level of $77 becomes a crucial point to monitor for Solana investors, as a fallback to this level would indicate a major shift in project dynamics.More on this topic: