Solana (SOL) Price Faces Potential 25% Drop If…

Solana (SOL) traders are closely watching price action as the asset struggles to maintain momentum. There is a bearish triangle formation on the twelve-hour chart. A failure of the price to push through could lead to a massive selloff.

According to analysts, a rejection of SOL at $220 has the potential to lead to a 25% slump. This may challenge the support close to $145.

Solana Price Triangle Pattern and Key Resistance Levels

Market analyst @best_analysts has identified a triangle pattern forming on Solana’s chart, indicating price consolidation between key levels. SOL has failed to overcome the $220 resistance level, despite this level having been a resistance level in the past. If this pattern fails and the price gets rejected it could lead to more selling pressure.

The first level of price support is the area around $145, which corresponds to previous trading levels. This level could be seen as a critical area where buyers come in if the bearish momentum gains further traction in the market.

PumpFun’s Large SOL Deposits Add Selling Pressure

As per OnchainLens, PumpFun has transferred 114285 SOL tokens worth over $27 Million from its Kraken wallets adding selling pressure. As of early 2025, PumpFun transferred more than 1 million of SOL tokens for roughly $208 million. Its total holdings are 2.72 million SOL equal to around $525 million.

In case PumpFun opts for liquidating more of its holdings, the price of Solana will be affected and may plummet further if market demand is not able to offset the relevant supply.

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Bearish Flag Breakdown Signals Further Weakness

There is further negative pressure towards Solana from the 4-hour chart, where a bearish flag pattern graced our charts. It was trading here before it got to this structure level and broke down, and therefore it is subjected to further selling pressure.

As it is evident from the chart, a measured move from the breakdown targets $160–$165, which is supported by the prior levels.

When the sellers manage to stay below these levels, the price test the lower level, $180 acts as a psychological level that should not be violated. A lack of support may, in turn, confirm the bearish pattern and lead to a decline toward the mentioned target.

The Relative Strength Index (RSI) is currently at 43.95 while it remained below the 50 level, indicating that Solana was oversold. This means that there is still no strength for a bullish breakout and SOL is still within the bear territories.

Grayscale’s Solana ETF Filing Could Impact Solana Price

Grayscale’s recent filing for a Solana ETF has introduced a pivotal development in the crypto market. The filing was acknowledged by the SEC, suggesting a shift in regulatory attitudes toward digital assets like Solana, which was previously classified as a security in legal proceedings.

Still, it is not a certainty that approval will be granted but the ETF filing means an increased institutional attention to Solana. It may increase SOL’s liquidity and reduce fluctuations in its price, potentially easing some of the current downward pressure.