SOLANA BULL TRAP CONFIRMED AS LOCAL TREND WEAKENS

Solana’s recent breakout attempt has failed after the price was unable to stay above a key resistance level near $88. What first looked like a strong bullish continuation has now turned into a classic bull trap—catching

late buyers before sharply reversing lower.

When price briefly breaks above resistance but cannot hold those gains, it often signals weakness rather than strength. That’s exactly what happened here. Instead of building support above resistance, Solana quickly slipped back into its previous trading range, shifting the short-term structure back to bearish.

At this stage, technical signals suggest that further downside is more likely in the near term.

Why the Breakout Failed

Solana’s rally pushed the price above the value area high and into major resistance around $88. However, buyers failed to maintain control at these higher levels.

This type of move is typical in a bull trap. Price breaks above resistance, attracts breakout traders, and then reverses as buying pressure fades. Once the price falls back below resistance, trapped buyers are often forced to sell, accelerating the move lower.

The first warning sign was the failure to hold above the value area high—a level that often acts as the upper boundary of a trading range. Rejection there usually leads to a rotation back toward lower levels.

Rejection at the Point of Control Confirms Weakness

After falling back into its range, Solana attempted to stabilize near the point of control (POC)—the price level where the most trading activity has taken place.

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The POC often acts as a balance zone during consolidation. However, Solana was unable to reclaim and hold above this level. The rejection here confirms that sellers remain in control.

When price fails at the POC after a breakout attempt, it often increases the probability of a full move back toward the lower end of the range. This rejection clearly shifts the short-term bias to bearish.

$78 Becomes the Key Level to Watch

With the local structure now bearish, attention turns to the next major support zone around $78.

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This level aligns with high-timeframe support and sits near the lower boundary of the broader trading range. It also closely matches the 0.618 Fibonacci retracement level, adding further technical significance.

Fibonacci levels often act as magnets during corrective moves, especially after failed breakouts. A move toward this area would complete a full rotation of the range and could bring increased volatility as liquidity is tested.

Possible Reversal Scenario

Although the short-term outlook favors more downside, the $78 area could also act as an important turning point.

If the price briefly drops below $78, tests the 0.618 Fibonacci level, and then quickly recovers, it could form a swing failure pattern (SFP). This would suggest a liquidity sweep rather than a true breakdown and could trigger a bounce—or even a larger reversal—depending on follow-through strength and volume.

For that reason, traders should watch the reaction at $78 carefully rather than assuming an automatic breakdown.

What Comes Next?

From a market structure perspective, Solana’s failed breakout confirms a bull trap and shifts short-term momentum to bearish. As long as the price remains below the value area high and the point of control, downside continuation toward $78 remains the more likely scenario.

Until buyers regain control above key resistance levels, rallies should be approached with caution. The market is currently in a corrective phase, and how Solana reacts around $78 will likely determine the next major move.