Solana (SOL), the high-performance blockchain often touted as an “Ethereum killer,” is facing mounting pressure as selling activity spikes and investor sentiment begins to shift. The price of SOL has dipped below key support levels, with technical signals now pointing to a potential drop beneath the $140 mark. While bearish momentum appears to dominate the current market mood, some experts believe the groundwork may be quietly forming for a bullish comeback.

After reaching highs near $300 earlier this year, Solana has since entered a strong downward trajectory. The pullback was triggered after a rejection at a local top, and now the asset is showing signs of correcting further. The recent slip below $151 — a critical support level — has resulted in a drop under $150, signaling a deeper retracement may be underway. The next major demand zone sits between $141 and $145, and a failure to hold this range could push SOL even lower in the short term.

One of the major reasons behind this weakening price action is the shift in on-chain activity. According to data from Glassnode, Solana recently recorded its third-highest Coin Days Destroyed (CDD) metric, reaching nearly 3.55 billion. CDD tracks how long coins remain dormant before being moved, and a sudden spike often indicates long-term holders are either cashing out profits or repositioning their assets. This movement by dormant wallets tends to precede market volatility and has raised concerns among traders about growing sell-side pressure.

Adding to the concern is the massive outflow of bridged cryptocurrencies — digital assets transferred across different blockchains — from the Solana ecosystem. On-chain analytics from Artemis revealed that Solana experienced the highest outflows among major chains, suggesting that investors are migrating capital elsewhere, particularly to Ethereum. In contrast, Ethereum recorded an influx of roughly $7.5 million while Solana faced over $10 million in outflows. This stark liquidity shift hints at changing investor preferences and potentially weakening demand for Solana in the short term.

While the broader sentiment may appear grim, it’s not entirely one-sided. Market analysts are pointing to a technical formation known as a cup and handle pattern on the weekly chart. This classic bullish continuation pattern, if validated, could suggest that Solana is preparing for a potential breakout — but only after enduring more short-term downside. The handle portion of the pattern appears to be forming now, with the price gravitating toward the $141 support level.

The Relative Strength Index (RSI), a momentum indicator, is also dipping toward the lower end of a descending channel. If it holds, this could imply that SOL is entering oversold territory — a common signal for an upcoming rebound. If buyers step in at these critical levels, there’s a chance for the price to climb back toward $160 in the coming sessions. However, if the $141 zone fails to act as support, further drops toward $135 or even lower become a very real possibility.

It’s also important to consider the ongoing competition between Solana and Ethereum, particularly in terms of liquidity and network usage. Solana’s recent outflows don’t just reflect price volatility — they highlight a tug-of-war for developer and investor attention in the broader blockchain landscape. This dynamic is likely to play a role in determining how quickly, and to what extent, Solana can bounce back.

Despite the current market pressure, many long-term investors remain cautiously optimistic. The $250 target, though distant, is still considered achievable by some, provided Solana can regain momentum in both technical and on-chain metrics. However, for that to happen, the asset must first stabilize above its demand zone and overcome short-term resistance.

For now, all eyes remain on the $140–$145 support range. If Solana can defend this level and attract fresh buying interest, a rebound toward $160 could materialize sooner than expected. If not, the bearish trend may persist, and a further decline would likely test the resilience of the network’s growing ecosystem.

As always, crypto markets remain unpredictable, and traders are urged to proceed with caution, especially in such highly volatile conditions. Whether this is a temporary dip or the beginning of a deeper downtrend, one thing is certain — the next few days could prove pivotal for Solana’s immediate future.