Solana's Bullish Channel Hides a 50% Crash Setup: On-Chain Data Warns
Solana's seemingly bullish rising channel is a trap. On-chain data reveals slipping hodler conviction and thinning short-term holder support, setting the stage for a potential 50% collapse mirroring January's crash.
Solana has been grinding higher in a rising channel for months, but don't get fooled. This pattern, forming right after a massive drop, is a classic continuation setup, not a reversal. The bulls are losing steam, and the bears are poised to strike.
Volume is drying up, showing less conviction behind the recent price action. Meanwhile, long-term holders are easing up on accumulation, and short-term holders are sitting on minimal gains, making them prime candidates to dump if things turn south.
The lower trendline of the channel is now the critical support. A break below $81.24 confirms the breakdown, and the charts point to a potential 50% haircut, back to the lows seen earlier this year.