Solana's price has formed a bearish head-and-shoulders pattern on the three-day chart, suggesting potential downside in early 2026. The token, which has declined from a year-to-date high of $294.30 to $126, is trading below key technical indicators, including the 50-day EMA and Supertrend. The MACD indicator is also below the zero line, while the RSI approaches oversold levels. A drop below $100 could lead to further declines, with a potential target of $75.
Despite the bearish technical outlook, Solana's price could be influenced by several catalysts. The recent launch of Solana ETFs has attracted over $763 million in net inflows, with the Bitwise Solana ETF leading the pack. Additionally, the upcoming Alpenglow upgrade, set for Q1 2026, aims to enhance Solana's transaction speed and reduce validator costs, potentially boosting its competitiveness against chains like Ethereum.
Solana's growth in the DeFi and RWA sectors, with a total value locked of $18.3 billion and $830 million respectively, also positions it as a significant player. The continued accumulation by digital asset treasury companies, attracted by Solana's high yield, further underscores its appeal in the crypto market.
Solana Faces Bearish Outlook Amid ETF Inflows and Alpenglow Upgrade
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