Solana (SOL) has confirmed a bull trap after failing to hold above the $88 resistance level. The breakout attempt looked strong at first, but the price quickly reversed, trapping late buyers and shifting short-term momentum to the downside.
The failed move above $88 marked a key turning point. Instead of building support above resistance, SOL fell back into its previous trading range. This pattern often signals weakness and leads to further declines.
After the rejection, the price rotated toward the point of control, a level where the highest trading volume occurred during consolidation. Solana failed to reclaim this level, which confirms that sellers are now in control.
The rejection at the point of control suggests the market has moved from balance to imbalance. As long as SOL trades below this level, analysts expect further downside pressure.
The next key level to watch is $78, which acts as major high-timeframe support. This zone also aligns with the lower boundary of the recent range. A move toward this level would complete a full rotation from the failed breakout.
Technical indicators also show that the 0.618 Fibonacci retracement sits just below $78, adding extra importance to this support area. If price breaks below it, losses could extend further.
However, traders are watching for a possible reaction at $78. If Solana briefly drops below this level and quickly recovers, it could form a swing failure pattern. For now, though, the short-term outlook remains bearish unless SOL regains strength above key resistance levels.
