Solana (SOL), the fifth-largest cryptocurrency by market cap, has seen its recent ETF-driven price surge evaporate, leaving traders on edge as technical indicators flash warnings of a deeper correction. After initially rallying on speculation that a Solana-based exchange-traded fund could be approved in the U.S., SOL’s price has retraced nearly all those gains.

At the time of writing, SOL is trading just above the critical $144 support level — a price point where on-chain data indicates over 14% of the token’s circulating supply is concentrated. This accumulation zone represents a battleground between bulls and bears. If this level fails to hold, analysts warn that SOL could face a further decline of up to 20%, potentially pushing the price towards the $115–$120 range.

Technical charts show a weakening structure, with SOL struggling to maintain higher lows. Momentum indicators like the Relative Strength Index (RSI) are sliding into neutral-to-bearish territory, while trading volumes have thinned out, suggesting that enthusiasm around the ETF news has quickly cooled.

Market participants had hoped that the ETF narrative would provide sustained buying interest, similar to what was seen with Bitcoin and Ethereum during their ETF approval phases. However, macro uncertainties, a broader crypto market pullback, and profit-taking have all contributed to SOL’s price reversal.

Looking ahead, traders will be watching whether SOL can defend the $144 zone. A decisive break below could trigger liquidations of leveraged long positions and intensify downward pressure. On the flip side, if buyers manage to step in and stabilize the price, SOL might consolidate before attempting another leg higher — but that would likely require a fresh catalyst beyond ETF speculation.