Solana Faces Significant Breakdown

Solana has decisively broken down, losing a critical support level following news of a U.S. attack on Iranian nuclear facilities. This unexpected geopolitical development triggered widespread panic across financial markets, with altcoins suffering the most. Solana, in particular, has experienced notable selling pressure, dropping 20% from its May high of approximately $185 to around $148.

This breakdown confirms investor concerns regarding SOL’s weakening uptrend. Noted analyst Carl Runefelt indicated that Solana has completed a Head and Shoulders pattern—a bearish technical structure often signaling further declines. The price has broken below the neckline of this pattern, confirming continued potential declines in the short term.

Adding to the bearish outlook, Solana’s failure to reclaim prior support levels during brief bounces indicates market weakness. With negative momentum indicators and shaken broader market sentiment, a quick recovery seems unlikely unless macro conditions stabilize.

Deeper Correction as Bearish Pattern Unfolds

Solana’s bullish momentum from late 2024 has largely dissipated, replaced by stagnation and sharp corrections amid worsening market conditions. Currently trading over 50% below its all-time high, SOL struggles under the weight of global macroeconomic uncertainty and rising geopolitical tensions. The US military strike against Iranian facilities has exacerbated volatility, affecting both traditional and crypto markets.

Once among the strongest performers of the previous cycle, Solana has seen its price action turn bearish in recent weeks. Bulls have failed to maintain crucial support levels, breaking below short-term trend structures. Runefelt highlights that Solana has completed a Head and Shoulders pattern, pointing to a potential downtrend. The pattern’s neckline breach sets a projected bearish target around $106.30—a level not seen since February.

This breakdown also reflects broader weaknesses in the altcoin market. Despite earlier expectations for an altseason, capital is rotating out of risk assets and opting for Bitcoin and stablecoins during times of uncertainty. Solana’s ongoing inability to reclaim previous highs or establish higher lows suggests a retreating market. With negative momentum indicators persisting, SOL may face an extended period of consolidation or further losses unless bulls reclaim critical ground quickly.

SOL Price Analysis: Key Support Breakdown

Solana currently faces pressure as it breaks below its critical 200-day simple moving average (SMA) around $149.54, a prior dynamic support level. This breakdown reflects growing bearish sentiment and loss of momentum after weeks of consolidation below the $155–$160 resistance zone. Currently, SOL trades at approximately $135.99, with a nearly 3% daily decline and over 20% drop from May highs.

The chart illustrates a rejection near the 100-day SMA (green line), and the sustained move below both the 200-day and 50-day SMAs (blue line) suggests a structural shift towards the downside. Elevated volume on red candles confirms that the breakdown is supported by increasing selling pressure rather than low liquidity.

If this trend continues, Solana may revisit the $120–$125 range, which previously served as strong support in early Q1 2025. The overall macroeconomic volatility and geopolitical tensions, particularly the recent U.S. strike on Iran, contribute to investor unease across risk assets including altcoins like Solana. A daily close above $149 is necessary to neutralize the short-term bearish structure and shift sentiment; until then, downside risks prevail.