SOL Price Prediction: Navigating the Storm Toward a Potential Rebound

#SOL

• Critical Support Test: SOL is trading near its lower Bollinger Band ($82.38), a make-or-break level for the short-term trend.
• Capitulation vs. Recovery: Market sentiment is fearful following a 40% drop, which could either lead to further selling or mark a tradable bottom.
• Defined Technical Path: The roadmap is clear: a hold above support targets $115, then $148. A break lower risks a fall toward $70.

SOL Price Prediction

Technical Analysis: SOL at Critical Juncture

As of February 7, 2026, SOL is trading at $86.32, significantly below its 20-day moving average of $115.32. This indicates a bearish short-term momentum. The MACD reading of 4.9929, while positive, shows weakening bullish momentum compared to recent history. The price is currently NEAR the lower Bollinger Band at $82.38, which often acts as a support level. According to BTCC financial analyst Robert, 'SOL is testing a crucial support zone. A sustained break below the $82.38 lower band could trigger further downside toward $70, while a rebound from here may target the middle band at $115.32 as initial resistance.'

Market Sentiment: Fear Amidst Volatility

Recent headlines paint a mixed but tense picture for Solana. News of a 40% price plunge erasing $1.5B from treasury holdings points to severe stress and potential forced selling. However, analyst predictions of a 'V-shaped rebound' suggest some see this as a capitulation event preceding a recovery. The accusation against Binance adds a LAYER of market structure concern. BTCC financial analyst Robert notes, 'The sentiment is overwhelmingly fearful, which from a contrarian standpoint can sometimes set the stage for a bounce. The key is whether the negative news flow has peaked. The prediction of new highs seems exceptionally optimistic in the near term given the technical damage.'

Factors Influencing SOL’s Price

Solana Treasury Firms Reel as SOL's 40% Plunge Erases $1.5B in Holdings

Solana's ecosystem is weathering a storm as its native token SOL plummeted 40% in 30 days, vaporizing $1.54 billion from treasury holdings of 19 key entities. Forward Industries now grips 6.9 million SOL worth $580 million—down 64% from peak valuations. The bleeding mirrors Friday's $300 million long liquidation cascade, including a single $6.69 million position unwind.

Market mechanics show no mercy: SOL's 3% intraday drop to $83.89 barely registers after December's 68% rout among worst-hit treasuries like Sharps Tech. Blockchain analytics reveal 18.5 million SOL remains stranded on corporate balance sheets, its value evaporating faster than speculative memecoins.

This isn't retail panic—it's institutional carnage. DeFi DevCorp's 42% SOL holdings haircut exemplifies how Leveraged bets backfire when 'up only' narratives collide with Bitcoin's gravitational pull. Until derivatives markets stabilize, Solana's treasury crisis may foreshadow deeper contagion.

Solana Price Prediction: V-Shaped Rebound Eyes New Highs After Capitulation

Solana's violent sell-off last week culminated in a textbook capitulation event, liquidating weak hands and resetting leverage across crypto markets. The tenth-largest liquidation on record compressed SOL's decline to cycle lows in a single move—a hallmark of exhaustion.

Historical patterns suggest such extremes often precede V-shaped recoveries. With forced selling absorbed and open interest purged, SOL has retraced its November breakout entirely. This technical reset coincides with fading downside momentum as buyers re-emerge.

The altcoin now tests a critical inflection point. Should demand follow through, Solana's path toward fresh all-time highs could accelerate as broader market conditions stabilize. Market structure echoes prior cycle bottoms where panic transitions abruptly to recovery.

Trader Accuses Binance of Causing Liquidation Through Abnormal Price Wick

Cryptocurrency trader Edison Zhang has publicly accused Binance of triggering a market event that liquidated his leveraged positions, resulting in significant losses. In an open letter shared on X (formerly Twitter), Zhang, known as @edisonzz, detailed how an unusual price movement—referred to as a 'wick'—on the SOL/USDT pair led to the automatic closure of his long positions. "Everything had been wiped out. My account was at zero. Ten years of heart and soul vanished into thin air," Zhang wrote, attaching trade screenshots as evidence.

The disputed price wick occurred on October 11, with SOL briefly dipping below Zhang's liquidation threshold of $145 to $141. A wick, represented by the thin vertical lines on candlestick charts, indicates the highest and lowest prices reached during a trading period, even if the asset did not close at those levels. Upper wicks signal selling pressure, while lower wicks reflect buying interest. Binance has yet to publicly respond to the allegations.

How High Will SOL Price Go?

Based on the current technical setup and market sentiment, SOL's near-term price path is contingent on holding key support. The immediate target for any recovery is the 20-day Moving Average and Bollinger Band middle line at $115.32. A convincing break above this level could open the door to test the upper Bollinger Band near $148.26.

However, failure to hold the $82.38 support could lead to a deeper correction. The following table outlines the key scenarios:

BTCC financial analyst Robert concludes, 'The 'V-shaped rebound' narrative is possible but requires a swift reclaim of the $115 level. A more probable path is a period of consolidation between $82 and $115 before the next major directional move. The high of $148 is a realistic bullish target for Q1 2026, but not before significant overhead supply is absorbed.'