SOL extends losses facing resistance at $89.08: weekly report

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Solana falls 3.91% this week

Highlights

Solana remains firmly in a bearish trend, trading well below major moving averages and facing sustained selling pressure.
All core momentum indicators confirm continued downside, with no buy signals and persistent seller dominance in the current range.
SOL is expected to consolidate between $75.75 and $89.50 this week, with a break below $81.40 risking further downside toward new lows.

Adoption gains tempered by SEC regulatory overhang this week

Western Union launched its USDPT stablecoin on Solana, highlighting further adoption of the network for global payment infrastructure. The Squads multisig protocol, a key security layer for Solana, secured $18 million in funding led by Solana Ventures to expand enterprise stablecoin operations. Although developer activity, DeFi participation, and network usage remain robust, regulatory uncertainty continues due to the SEC's previous classification of SOL as a security.

Bearish momentum persists as technical signals remain negative over the week

Weekly technical analysis shows SOL remains under firm bearish pressure, as its price sits beneath all major moving averages (MA-20 at $99.03, MA-50 at $145.03, MA-200 at $105.27), with the MA-20 acting as nearest dynamic resistance. Key support and resistance are set at $81.40 and $88.08, respectively. Weekly RSI is in oversold territory, and both the MACD and ADX maintain a negative bias, while Stochastic RSI and Commodity Channel Index are neutral to oversold, giving no sign of reversal.

Range-bound outlook as upside breakout signals remain elusive for next week

Looking ahead to the next 7 days, SOL is expected to consolidate in the $75.75 to $89.50 range, based on current price action and weekly volatility. The probability of a meaningful rebound remains low, below 20%, as none of the four key W1 indicators suggest a buy. A break above $89.50 could trigger short-term recovery toward the MA-20, but signals indicate this is unlikely. If SOL breaks below $81.40, further losses are likely, potentially extending the decline toward $75.75.

Anton Kharitonov, expert at Traders Union, notes that Solana (SOL) experienced another week of decline, closing well below all key moving averages and confirming persistent bearish sentiment. He sees little optimism despite positive developments, such as the Western Union USDPT stablecoin launch and increased venture funding for the Squads protocol, as fundamental tailwinds are overshadowed by ongoing regulatory risks and weak technicals. Price struggled to hold support, sitting just above the $81.40 level, with major technical indicators like RSI, MACD, and ADX reinforcing a negative outlook. Kharitonov believes the coming week offers little chance for significant rebound, projecting price to consolidate between $75.75 and $89.50 unless resistance at $89.50 is convincingly breached. He maintains a cautious stance, warning that a close below $81.40 could open further downside toward $75.75. "As long as SOL stays below the weekly MA-20 and $89.50, I see no valid reason to expect a turnaround this week."

Earlier, analysts noted that Solana was struggling with persistent selling pressure while ongoing regulatory and technical challenges kept its outlook cautious. The latest developments confirm that bearish momentum prevails, with a decisive move below $81.40 now posing a significant downside risk that traders should closely monitor.

Source of Data: SOL Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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