$SOL
🚨 Solana in difficult position 🚨
When Solana's price action starts to resemble a classic double-top formation, a bearish pattern that usually precedes reversals, it may be giving traders an early warning sign. Currently trading at $148, SOL is having difficulty breaking above the resistance level between $150 and $152, which corresponds to its previous local high.
The stage is set for a possible trend reversal when this level is not reached on the second attempt. The convergence of overhead resistance such as the 100-day EMA and the still-distant 200-day EMA are in favor to this bearish scenario. The price has shown exhaustion following a strong rally from April lows near $115, and it is currently stalling just below those zones.
Bulls who depend solely on momentum to push higher should be wary of the RSI, which is just under 60 and indicates cooling momentum without being oversold. Another indication of waning buyer interest is the volume starting to taper off as the price approaches resistance. It is more likely that SOL will drop quickly toward the 50-day EMA near $132 if it is unable to maintain above the $140 support, which is the neckline of this possible double-top.
A verified collapse below that would allow for more significant retracements, perhaps as much as $110 or even $120. This arrangement should be closely monitored by investors. Solana looks susceptible to a brief correction even though the overall market is holding up. Before making a strong comeback, conservative traders might think about derisking or holding off until there is a verified breakout above the $152 resistance.