Solana has entered a corrective phase, retreating from its recent peak of $168. The price is now consolidating amid broader market cooling, prompting speculation over whether the current decline will extend toward the $105 level.

While some analysts suggest a deeper pullback is imminent, others see potential for a sharp reversal if critical support zones hold.

Bear Trap or Deeper Correction? Analysts Divided

Solana’s decline has brought it to a technical decision point. Analyst Batman points to a potential bear trap, with the price dipping briefly to $105 before rebounding sharply.

His model projects a V-shaped recovery, possibly pushing Solana as high as $260 if the rally confirms. Historically, the $105 zone has been a strong demand level, fueling major rallies earlier in 2024.

However, not all experts are convinced by this bullish reversal theory. Analyst Man of Bitcoin believes Solana is completing an ABC correction, targeting the 0.618 and 0.786 Fibonacci support levels around $122.77 and $109.84.

If price action breaks below the $130 level with volume, it could validate the bearish structure and lead to a full descension toward $105. He also notes bearish MACD alignment, with no clear sign of divergence on higher timeframes.

Momentum Indicators Show Mixed Signals

Technicals offer a range of interpretations. The daily RSI sits near 35, signaling the asset is nearing oversold conditions. On the 6-hour chart, the stochastic RSI is turning upward, suggesting a potential return of buyers.

Meanwhile, Bollinger Bands remain compressed, indicating low volatility—but setting the stage for a breakout. A push beyond this squeeze could open the door to $156 or higher.

Blockchain data reveals continued accumulation by whale wallets below the $140 level, with long-term staking behavior suggesting larger players are preparing for a shift. While retail sentiment remains cautious, open interest is flat—yet poised to react swiftly to any price movement outside the current range.

W-Pattern Offers Bullish Setup if Support Holds

Another potential bullish scenario comes from analyst BitGuru, who identifies a developing W-pattern centered around the $139.55 neckline. If Solana maintains support above this level, the pattern suggests an initial move to $156 and possibly $200 as bullish momentum builds. A breach of $168.49, the prior high, would confirm the breakout and potentially clear the path to $260.

Still, the outlook remains precarious. A breakdown below $139.55 could validate the bear trap thesis and send prices toward $105. Conversely, a recovery past $150 would strengthen the bullish case, giving Solana a chance to reclaim higher levels. For now, the $139-$140 range serves as the pivotal battleground in determining whether the bulls or bears take control.

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