The start-of-the-year rally saw SOL break out of its multi-month downtrend, reclaim the upper zone of its local range, and briefly breach above the key $145 resistance last week. However, Sunday’s market pullback has sent Solana back below key areas.
He explained that the price is attempting to rebound from its local support area, which could trigger a “sharp relief move toward previous highs” if the price can hold the current levels.
Meanwhile, analyst Man of Bitcoin noted that the altcoin’s price broke below its two-week ascending trendline, which had been supporting its 17% surge from its yearly opening. Moreover, it also dropped below the $136 mark, where the price had consistently bounced after the recent breakout.
The market observer pointed out that Solana’s short-term support sits between the $129-$136 area, adding that a breach and sustained breakdown from this area would spell trouble for the cryptocurrency.
Analysts Warn Of Head And Shoulder PatternOther market watchers highlighted a macro pattern on Solana’s chart, suggesting that a breakdown to new lows could be coming. Notably, the altcoin displays a two-year Head and Shoulders formation in the weekly timeframe.
Meanwhile, the pattern’s head formed during its late 2024 and early 2025 bullish run, which led to its ATH of $293 a year ago. Lastly, the right shoulder developed after the Q3 2025 rally and Q4 correction.
In an X post, he compared SOL’s recent performance to the S&P 500 (SPX) price action between 2009 and 2011. Per the post, SPX displayed the same pattern as Solana, but ultimately invalidated the pattern after bouncing from the neckline and breaking above the right shoulder’s peak, eventually reaching new highs.
To the analyst, the altcoin could display a similar performance if it rebounds from the current levels and starts to climb higher.
As of this writing, Solana is trading at $134, a 5.6% decline in the daily timeframe.
