Solana price is again flashing warning signs, with recent bearish engulfing candles hinting that a drop below the psychological $80 mark is increasingly on the table. After a failed attempt to reclaim higher resistance, the market has slipped back into a vulnerable posture, and the broader structure continues to lean corrective rather than constructive.
The latest move lower began after Solana tried to break above the $90 resistance zone. Buyers briefly pushed price into that area, but the rally quickly stalled, and the market reversed with authority. The resulting bearish engulfing candles – where the new candle’s body fully engulfs the prior bullish candle – highlight a decisive shift in control from buyers to sellers. This pattern often appears at or near key resistance when bullish momentum is exhausted and aggressive sell orders rush in to take advantage of trapped longs.
What makes the rejection even more concerning is Solana’s failure to stay above its point of control (POC). The POC represents the price level where the highest trading activity has recently taken place, effectively the heart of the current value zone. Multiple closes back below this level after an attempted breakout are a strong signal that the market is no longer balanced and that sellers have regained the initiative. When price loses the POC following a failed push higher, it frequently marks the beginning of a deeper, more persistent corrective leg.
With SOL now trading under the POC, the next technical magnet to the downside is the value area low – the lower edge of the recent fair-value range. During corrective phases, price often gravitates toward this boundary as the market tests how committed buyers really are at discount levels. A retest of the value area low is therefore a logical next step if the current selling pressure remains intact.
Beneath that, a more critical zone emerges: high‑timeframe support clustered around $78. This level not only forms the lower boundary of the broader trading structure but also places Solana firmly below the round-number threshold of $80. Such psychological levels frequently act as emotional triggers, amplifying volatility as traders reassess positions, adjust risk, and respond to forced liquidations or margin calls.
The $78 region carries added technical weight because it aligns closely with the 0.618 Fibonacci retracement of the recent upswing. This “golden ratio” is widely watched by market participants and often attracts price during corrective waves. When Fibonacci confluence overlaps with a previously established support area, it can become a prime zone for liquidity events – sharp dips into resting orders followed by equally sharp reactions.
Indeed, the prior swing low near $78 suggests an area where a significant amount of stop-loss liquidity is likely sitting. Markets are drawn to these pockets of resting orders because they provide the fuel for large players to enter or exit positions at favorable prices. A quick spike down into this zone, followed by a strong, impulsive bounce back above it, would fit the classic profile of a liquidity sweep. In that scenario, the move below $80 could be a short-lived flush rather than the start of a sustained breakdown.
However, the tempo and structure of any move into $78 will matter as much as the level itself. A swift, capitulation-style dip that is quickly reclaimed by buyers can signal exhaustion of selling pressure and set the stage for a relief rally. Conversely, a slow grind lower, or extended consolidation beneath $78, would undermine the liquidity-sweep thesis. Prolonged acceptance below that support would indicate that buyers are not stepping in with conviction, increasing the probability that the correction has further to run.
From a broader market-structure perspective, Solana has yet to invalidate its bearish bias. A clear pattern of lower highs remains intact, and every recent effort to reclaim resistance has stalled before transforming into a sustainable uptrend. Until price can put in a higher high and hold above former resistance levels, rallies are better interpreted as reactive short-covering or corrective bounces within a larger down or sideways structure, rather than the start of a fresh bullish leg.
The presence of bearish engulfing candles at resistance strengthens this cautious stance. Such formations at key levels typically act as continuation signals in favor of the prevailing down-biased structure, especially when they are supported by weakening volume on the prior advance and heavier volume on the reversal. They often mark areas where late buyers are trapped, providing added incentive for sellers to press the market lower as those positions are forced out.
In the short term, the most probable path remains a rotation toward the value area low and, ultimately, the high‑timeframe support near $78. As long as Solana trades beneath both resistance and the point of control, the burden of proof lies firmly on the bulls. A decisive reclaim of these value levels, ideally backed by expanding volume and a strong intraday close, would be needed to start neutralizing the current downside risk.
For traders, the sub‑$80 region will likely be the key battleground. A sharp rejection from the $78-$80 pocket, with price quickly snapping back above $80 and holding intraday dips, could provide an opportunity for short-term long setups targeting a move back toward the POC and the mid-range. On the other hand, if price slices through $78 and then repeatedly fails to reclaim it, that would argue for a more cautious stance, as it would open the door to exploring even lower supports and extending the corrective cycle.
Risk management around these levels is crucial. Leveraged positions are particularly vulnerable during tests of major support zones, where volatility and slippage can spike. Traders may consider reducing position size as price approaches $78, tightening stops on existing longs, or waiting for clear confirmation – such as a strong bullish reversal candle or a break back above the POC – before committing to new directional bets. For those already short from higher levels, partial profit-taking near key supports and moving stops to lock in gains can help protect against abrupt reversals typical of liquidity-driven bounces.
It is also important to separate short‑term technical weakness from long‑term fundamental narratives. Even if Solana’s underlying ecosystem remains active and its development trajectory intact, markets can and do experience extended corrective phases. Speculative assets often overshoot both to the upside and downside, and technical structures like the current one tend to play out independent of long‑term value propositions. That reinforces why traders and investors alike should pay close attention to how price actually behaves around the $78 area rather than relying solely on broader bullish or bearish stories.
Macro context and sentiment in the wider crypto market can further influence Solana’s next move. If risk assets as a whole come under pressure – for example, due to shifting expectations around interest rates or regulatory headlines – even strong supports can give way as correlation kicks in. Conversely, a broad-based recovery in major cryptocurrencies could help stabilize Solana above $78, turning what now looks like a vulnerable retest into a constructive higher low in the bigger picture.
Looking ahead, the roadmap for Solana’s price is likely to hinge on a few clear technical signals: whether $78 holds or breaks, whether a higher low can form above that level, and whether price can ultimately reclaim and defend the POC and overhead resistance near $90. Until those conditions are met, downside risks remain elevated, and any bounce should be treated with skepticism unless it is supported by clear structural improvements.
In summary, Solana’s chart currently points toward continued weakness, with the risk of a slide below $80 growing as bearish engulfing candles reinforce a still-corrective market structure. The $78 zone stands out as the next major decision area. How price reacts there will likely define whether the current move resolves as a temporary liquidity sweep followed by relief, or evolves into a deeper, more prolonged correction in the weeks ahead.