Solana price must hold $80 support to fuel next leg higher: analyst

While the token remains well below the 0.236 Fibonacci retracement level near $111 and the weekly Supertrend resistance around $121, the $79-$80 support area has continued to attract buyers during repeated selloffs.

According to analysts at More Crypto Online, Solana could decline toward $62 if it fails to hold the key $72–$78 support zone. Conversely, a rebound above the May 12 high near $98 could pave the way for a move toward the $110 level.

Institutional sentiment toward Solana has remained mixed. Reports that Goldman Sachs liquidated its Solana ETF exposure earlier this year removed a notable source of institutional demand, while several asset managers continue pursuing crypto-related investment products tied to major layer-1 networks.

Traders have increasingly focused on whether fresh institutional participation emerges if market conditions stabilize during the second half of the year.

What technical risks could invalidate the bullish thesis？

The daily chart presents a more cautious picture. Solana price recently formed a bearish double-top pattern after failing twice near the $98 resistance area, first in March and again in May. The structure developed as momentum weakened across the recovery rally and sellers repeatedly defended the same overhead resistance zone.

Solana price has formed a double top pattern on the daily chart — May 29 | Source: crypto.news

The chart shows that SOL has already fallen below several short-term support levels near $90 and $85. The daily Supertrend indicator remains bearish around $91, while the MACD has crossed lower and continues to trend below its signal line.

A separate longer-term chart structure also warrants attention. The weekly timeframe shows SOL trading inside what appears to be a bearish flag formation following its collapse from the 2025 highs.

Technical analysis treats such formations as continuation patterns, with breakdowns often producing another leg lower in the direction of the previous trend.

Derivatives positioning remains defensive as well. Open interest across Solana perpetual futures has declined during the recent correction, suggesting traders have reduced leveraged long exposure rather than adding new bullish bets.

Funding rates on several major exchanges have remained negative, showing that short sellers continue to dominate positioning.

CoinGlass liquidation data highlights another important battleground around current prices. A large cluster of leveraged positions sits near the $80 level, making it one of the most significant liquidity zones on the chart. Additional liquidation pools are concentrated around $84, $85, and $86, where short sellers could face pressure if price stages a recovery.

Solana liquidation heatmap | Source: CoinGlass

The heatmap suggests volatility could increase sharply if SOL breaks away from its current range. A move below $80 could trigger another wave of long liquidations and expose support near the $75-$77 region. Conversely, a recovery above $84 may force short-covering activity and create room for a move toward the $88 resistance cluster.

Macro conditions remain another source of uncertainty. Elevated oil prices have complicated expectations for Federal Reserve rate cuts later this year, particularly after recent inflation data showed price pressures remain stubbornly above target.

Higher borrowing costs and tighter financial conditions have historically weighed on high-beta cryptocurrencies such as Solana.

For now, traders appear focused on a single level. While daily charts continue to show a bearish double-top structure and weekly charts hint at a larger bearish flag, Scients thesis remains valid as long as the $79-$80 support zone survives.

Holding that area could allow buyers to target a recovery toward $100 and potentially $120, where volume profile data shows relatively limited resistance.

A decisive break beneath support, however, would invalidate the accumulation narrative and shift attention toward deeper downside targets that some analysts believe could extend well below the current trading range.