SOL’s daily chart indicates a potential drop to $120, driven by the formation of a bearish head-and-shoulders pattern. The target for this drop is near $126, supported by a key liquidity zone. While bearish signals are present, including a downturn on the 1-day chart and strong correlations with Bitcoin, the $120 mark is also viewed as a significant demand level. Additionally, onchain metrics present a more optimistic perspective: the Network Value to Transactions Ratio (NVT) is at its lowest in months, suggesting strong network usage relative to its market valuation. Furthermore, an uptick in SOL withdrawals from exchanges points to growing investor confidence, suggesting accumulation despite short-term price declines. Although Solana's price has significantly dropped from a high of $295 earlier in 2025, underlying metrics indicate resilience and potential for recovery in the long run.

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