The SOL candlestick chart shows bottom characteristics, with extreme pessimism fostering a reversal opportunity

By observing Solana’s candlestick chart, we can clearly see recent sharp price fluctuations. From $116 down to the current $77.80 (as of February 12, 2026), a decline of over 30%, with market sentiment plunging into extreme pessimism. On the surface, all signs point toward a bearish trend. However, a closer analysis suggests that this extreme market panic may actually signal an important turning point.

Solana Ecosystem Faces Fundamental Pressure, But This Is Just a Cycle Test

Recently, the Solana ecosystem has indeed faced several setbacks. Step Finance was hacked for $27 million, and 38 million SOL tokens are about to unlock, potentially impacting market supply—these negative news items flood the market and intensify investor exit sentiment. The overall downtrend across the crypto market further amplifies this panic.

But if we broaden our perspective, such scenarios are not unfamiliar. Remember 2021? At that time, the Solana network experienced multiple outages, and many called it a “garbage chain.” The market consensus was: Solana was finished. Yet, what happened next? SOL rebounded from a low of $8 to $260. History is repeating itself, with the same script: bad news, loss of confidence, sharp price drops—then a reversal.

Data Comparison Shows Solana’s Fundamentals Are Far From Collapsing

The data speaks for itself. In January, Solana’s DEX trading volume reached $117 billion, easily surpassing Ethereum and all Layer 2 solutions. Polymarket, a prediction market platform, had a trading volume of $7.66 billion last month—these figures demonstrate the network’s activity and value-carrying capacity. The more pessimistic the market sentiment, the healthier the fundamentals appear—this is the biggest contradiction.

When everyone is fleeing, the ecosystem data is hitting new highs. This divergence itself tells a story: the pricing power has completely deviated from the fundamentals.

From Candlestick Charts to Technical Analysis: Finding Confirmed Support Levels

Looking at Solana’s candlestick chart and technical structure, the current situation is indeed bleak. MACD has fallen below zero, and the $96.40 low seems unstable. From a chart perspective, the bears’ momentum is still ongoing. But it’s precisely this extreme technical pessimism that fuels expectations for a reversal.

The bottom often forms amid such distrust. When all technical indicators scream “danger,” it actually indicates that the downside potential is limited.

From Candlestick Signals to Trading Strategies: Precisely Capturing Reversal Opportunities

Based on the current candlestick patterns and price levels, my trading approach is as follows:

Step 1: Accumulation at Low Levels
If SOL continues downward and drops near the $95.95 historical low, that will be a key observation point. But don’t be greedy to go all-in immediately—wait for clear and effective rebound signals, such as a confirmed bottom pattern on the daily chart, significant volume increase, etc., before considering phased buying.

Step 2: Reducing Positions After the Rebound
Once the price rebounds to around $106, this will become an important resistance level. At this point, gradually reduce positions and avoid chasing the high. This zone previously served as support turned resistance, representing a risk-reward balance point.

Step 3: Strict Stop-Loss Enforcement
When shorting on a rebound, set your stop-loss firmly at $110. If the price breaks through this level, it indicates the bearish pattern has been invalidated, and you should exit immediately. In highly volatile markets, risk control always comes first.

From the candlestick patterns, although SOL is currently in a tough phase, every such extreme sentiment harbors the potential for the next wave. The key is not to be overwhelmed by market noise but to rely on data, technical analysis, and disciplined strategies to guide your actions.