In recent weeks, Solana has repeatedly tested the $160 resistance level but has ultimately retreated each time it approached this benchmark. Now, there is speculation in the market about whether this setback will cause SOL to decline to the $120 level. Early predictions suggest that SOL may revert to its previous trading range over the past month, with the exception of finding stability in the $165 to $170 range.

However, a decrease in on-chain activity indicates weakening usage and demand for Solana, suggesting a continuation of the ongoing correction phase. Given the rejection at the higher range, traders are contemplating a return to SOL's previous lows.

The midpoint of the range, between $156 and $116, stands at $136, with Fibonacci retracement levels providing support at $141 and $122. Currently, SOL's support lies at $141, with a 10.8% dip observed. However, it remains uncertain whether this support level can withstand bearish pressure.

Technical indicators show the RSI slipping below the neutral 50 mark, signaling bearish momentum, while the MACD oscillates between bullish and bearish sentiments.

Investors anticipate a potential relief bounce at the $136 mid-range support, although shaky trading volume suggests a further decline to the $122 level. Solana is currently trading at $154.67, up 7.66% in the past 24 hours.

Despite previous impressive recoveries, the market remains cautious about Solana's bullish return, as the coin currently lacks strong bullish conviction, posing challenges for its future prospects.