Solana's price has experienced a significant drop following its peak at $295.83 on January 18, now trading at $171.81, marking a 41% decline.

The altcoin, previously trading within an upward parallel channel since 2023, has broken below the lower boundary of the channel, indicating a clear shift in market dynamics and potentially forecasting further price decreases.

Investor sentiment has shifted as Solana ventures outside its multi-year-long ascending channel, a compelling sign of changing market trends.

Solana's recent dip below the lower boundary line signifies a shift in the bullish trend, pointing towards potential bearish control in the market.

This breach of the established trend channel suggests a shift in momentum towards the bearish side, supported by negative Elder-Ray Indexes since January 27, further confirming the strong bearish sentiment surrounding SOL.

The current negative Elder-Ray Index at -30.4 signals a prevailing bearish stance, indicating robust selling pressure and hinting at potential price declines in the SOL market.

Analysis using Fibonacci Retracement tool suggests that SOL's price might target $136.62 if buying pressure continues to weaken. Further decline could see the price dropping to $120.72, a level last seen in September.

However, a rekindling of demand for SOL could alter this downward trajectory. In such a scenario, a successful price retest might push SOL back above the ascending channel's lower bounds and towards a target of $220.58.