Is Solana Bullish or Bearish?

A bearish corrective trend is unfolding across several markets—but not every asset currently offers a confirmed setup for entering sell positions. It's crucial to distinguish between market analysis and an actionable trade setup.

While analysis may explore various scenarios using both technical and fundamental perspectives, a setup is the clear structure every trader should define before opening a position. It focuses strategy on two high-probability outcomes based on current price action. So, what does this mean for Solana?

Daily time frame analysis

SOLUSD - 1 Day Time Frame

All key conditions for entering a sell position on Solana have now been met. First, we observed a withdrawal of Buy-Side Liquidity.

This was followed by a decisive close below a key support level—highlighted in orange on the attached chart. That move was then reinforced by the formation of a new resistance zone, confirming the presence of ongoing bearish momentum.

This newly formed resistance zone now serves as the main reference for holding open short positions. As long as price action remains below this area, the bearish outlook is valid. The primary target in this scenario is the Sell-Side Liquidity level, which provides an optimal point for taking profits.

Solana price target

If Solana's price manages to close above this resistance zone, it would indicate that bearish conditions are weakening. In that case, the likelihood of a bullish reversal increases significantly.

Under such conditions, the next likely targets become the Buy-Side Liquidity levels—depending on the timeframe and intention behind any newly opened long position.

This highlights the importance of adapting trading strategies based on real-time price behavior. Remaining flexible and aligned with current market structure ensures that traders can respond effectively as momentum shifts.