Technical analysis by Arthur_FXMaster about Symbol SOL: Sell recommendation (12/24/2025)

This analysis covers the current technical setup for Solana (SOL/USD) based on chart, alongside the broader fundamental context as of late December 2024/2025. Technical Analysis The chart shows a bearish continuation pattern within a descending channel. Structure: Price has confirmed a Break of Structure (BoS) and a Change of Character (CHoCH) to the downside. The recent "Support breakout" (blue zone around $123–$124) has flipped into a Supply Zone (resistance). Current Action: SOL is currently retesting the lower boundary of that broken support. If it fails to reclaim the $124 level, a rejection is likely. Targets: Target 1:$116.79 (Immediate liquidity/prior low). Target 2:$111.63 (Lower channel boundary). Indicator Note: Volume remains relatively flat on this retracement, suggesting a lack of strong buying conviction to push back into the $130 range. Fundamental Analysis While the technicals look heavy, the fundamental backdrop for Solana remains a mix of high network activity and macro headwinds. Network Dominance: Solana continues to lead in DEX volume and retail engagement, largely driven by the meme coin ecosystem and the Jupiter aggregator. This creates a high "floor" for SOL demand due to transaction fees. Institutional Interest: The narrative surrounding a potential Solana ETF (following Bitcoin and Ethereum) remains a long-term bullish catalyst, though regulatory clarity is still pending. Ecosystem Growth: Developments like Firedancer (an independent validator client) are nearing mainnet stages, which promises to significantly increase network throughput and decentralization. Market Sentiment: As it is late December, the market is often influenced by "tax-loss harvesting" or lower holiday liquidity, which can lead to the choppy, downward-sloping price action seen in your chart. Summary Table Factor , Outlook , Key Level Short-term Technical, Bearish , Resistance at $124 Long-term Fundamental, Bullish Strong TVL and active addresses | Risk, High, Breakdown below $111 could trigger a deeper correction Would you like me to look for any specific news events or upcoming token unlocks that might impact these price targets?