Solana (SOL) Drops Below $70 — What's Next?

Solana (SOL) has come under pressure in recent sessions, falling nearly 20% since May 31 as broader weakness returned to the cryptocurrency market. While the decline itself is significant, it has also pushed the asset below an important low formed earlier this year, creating uncertainty about whether the current move represents the continuation of a longer-term downtrend or the potential foundation for a recovery.

Solana (SOL) technical analysis

SOLUSD - 1 Day Time Frame

Since May 31, Solana has entered a phase of bearish price delivery, resulting in a correction of almost 20%. During this move, price also swept sell-side liquidity resting below the low formed in February, adding an important technical element to the current market structure.

The recent liquidity sweep raises an important question regarding Solana's next move. The market could continue developing within the broader bearish trend that began in September last year. Alternatively, the decline below the February low may prove to be a liquidity-driven move that could be followed by a stronger bullish reaction.

This type of behavior is not uncommon after sell-side liquidity has been taken. Once the market clears liquidity below a significant reference level, the subsequent price reaction often becomes the key factor in determining whether bearish momentum remains active or whether buyers are beginning to regain control.

At present, the most important structural level is the resistance zone formed on the daily timeframe at the beginning of the recent decline. This area currently represents the key barrier that could determine the next phase of price development.

As long as Solana remains below this resistance zone on the daily timeframe, the broader bearish structure may remain intact. However, the recent liquidity sweep means traders should also remain alert to signs of stabilization or a shift in momentum.

Solana (SOL) technical analysis

The resistance zone created at the start of the recent bearish move remains the primary level to watch. If Solana continues to trade below this area, market conditions could continue favoring further downside pressure and an extension of the broader bearish trend.

On the other hand, a sustained daily close above the resistance zone could suggest that bearish momentum is weakening. Such a development may indicate improving market conditions and could open the door for a broader recovery phase.

For now, both scenarios remain possible. The recent sell-side liquidity sweep creates conditions for a potential bullish reaction, but the broader bearish context remains relevant while price trades below key resistance. The market's reaction around this zone will likely provide important clues regarding Solana's next major move.

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