Solana has confirmed a bull trap after failing to sustain a breakout above the $88 resistance level, shifting its short-term market structure back to bearish.
What initially appeared to be bullish continuation quickly reversed as price lost acceptance above the value area high, trapping late buyers and rotating back into the prior trading range.
The rejection at the point of control, the level with the highest traded volume within the range, signals renewed seller dominance and increases the probability of further downside rotation.
Technically, failed breakouts at high-timeframe resistance often trigger sharp corrective moves as leveraged long positions unwind and liquidity is drawn toward lower value areas.
With local structure now bearish, the next key downside level sits near $78, which aligns with high-timeframe support and the lower boundary of the broader trading range.
Additional confluence comes from the 0.618 Fibonacci retracement just below $78, a level that often acts as a magnet during corrective phases following invalidated breakouts.
Unless Solana reclaims and holds above the value area high and point of control, rallies are likely to face selling pressure, with price action around $78 expected to determine whether the correction deepens or stabilises.
At the time of reporting, Solana price was $86.58.