#BTC Solana (SOL) Price Faces Bearish Pressure, But On-Chain Data Tells a Different Story

Solana (SOL) is at a critical juncture. Despite strong on-chain indicators, its daily chart signals a potential drop to $120. A clear bearish engulfing pattern combined with a classic head-and-shoulders formation suggests further downside if the $140 neckline breaks. This could push SOL towards a $126 target, potentially testing the $95-$120 demand zone in coming weeks. A close above $157 would invalidate this bearish outlook.

Bitcoin Correlation and Investor Confidence

Solana's price often mirrors Bitcoin's (BTC) movements. With BTC potentially retesting $100,000, SOL could face increased selling pressure. However, digging deeper reveals a different narrative.

On-Chain Metrics Paint a Bullish Picture

Optimistic on-chain data from Glassnode presents a compelling counterpoint:

* Network Value to Transactions (NVT) Ratio: Solana's NVT has plummeted below 10, its lowest since February 2025. This signals robust network usage relative to its market value, hinting at strong long-term potential.

* Exchange Net Position Change: Consistent SOL withdrawals from exchanges have dominated, peaking with -4.6 million SOL outflows on May 28th. While recent deposits align with the current price dip, the overarching trend indicates growing investor confidence and accumulation for future gains.

The Big Picture for Solana

Despite recent price volatility and a drop from $295 earlier in 2025, Solana's underlying strength is undeniable. The stable NVT and increasing exchange outflows underscore robust network activity and investor accumulation, potentially overshadowing short-term bearish price movements.