Several major cryptocurrencies are exhibiting renewed signs of weakness—a development that may not align with long-term investor expectations but could present opportunities for short-term market participants seeking to engage with potential downside setups.

In the case of Solana, the outlook remains ambiguous, with possible formations pointing in both bullish and bearish directions. The key question is: what could be monitored, and what cautionary signals may emerge?

Solana technical analysis

SOLUSD - 1 Day Time Frame

Before considering specific conditions for potential entry points, it is important to assess the broader context of Solana’s recent price behavior. Since early July, the asset has been in a relatively strong upward phase, surpassing the psychological threshold of $200—a level last reached in February. From a higher time frame perspective, this suggests that Solana remains within a bullish price expansion.

Nonetheless, it is equally important to note that pullbacks are a normal and potentially constructive component of trending markets. Accordingly, if certain technical criteria are met, the potential for short-term downside scenarios cannot be ruled out.

As with upward movements, any bearish setups would also require a confirmed candle body close beyond key price levels on the 4-hour chart. For clarity, the accompanying chart highlights two zones of interest: the blue zone marks support, where a close beneath it could indicate increased downside potential.

In contrast, the orange zone reflects resistance, and a confirmed close above this level could reinforce the case for continued upward momentum.

Solana price target

Whether the price breaks below support or above resistance, both scenarios rely on a shared technical principle: potential targets may be identified around visible liquidity areas.

In the event of a bearish breakdown, Sell-Side Liquidity levels could serve as logical near-term objectives. However, given the prevailing longer-term bullish structure, any such move warrants caution, as the probability of sharp reversals may remain elevated.

If price action confirms a continuation above the resistance zone, Buy-Side Liquidity levels could serve as reference points for upside potential. Should bullish momentum persist, the path may extend toward this year’s high, situated just below the psychological level of $300.