Solana is facing headwinds as a bearish pattern is forecasting another crash to $145. At press time, SOL price trades at $163 amid intense volatility that has seen the price fluctuate between a daily low of $161 and a daily high of $173.
Solana Price at Risk as Double Top Signals Further Bleed
In 24 hours, per Coinglass data, more than $30M in SOL longs have been wiped out. This has caused a bearish outlook since last coingape analysis that predicted $180 next as open interest hit a 4 month high. This sell-side pressure stems not only from spot selling but also from long liquidations.
Solana price may crash to $145 soon as it forms a double top pattern on its four-hour chart. This is one of the most bearish patterns in technical analysis, showing that the price has failed to break previous resistance and is now on the verge of falling to previous lows.
At press time, Solana was defending support at the neckline of this double top. This support lies at $159, and if SOL price breaches this level, the downward momentum will continue towards $145. At this point, SOL will have crashed by 11% from its current trading price.
The falling RSI adds strength to this bearish outlook, as this indicator plunges to the lowest level since early April. At press time, this indicator was at 30, a sign that the bearish momentum is strong, and sellers are in control.
The MACD further shows that bears are gaining strength, as the lengthening histogram bars indicate that selling activity is gaining strength.
Key Price Levels to Watch on Daily chart
One of the key levels to watch in Solana price movement is $185, which is also the top of the bearish pattern seen above. If Solana resumes the uptrend and breaks this level, it will invalidate the bearish thesis and confirm that bulls have regained control.
Fibonacci levels also show that if Solana drops below the support of $152, the resulting crash will not only push the price to $145, but also cause a dip to $117 if buyers fail to step in to accumulate at the current prices.
Meanwhile, the main resistance level lies at $188, and if the current bearish momentum weakens and buyers start accumulating SOL, the price may hit this level. An upswing beyond $200 also depends on Solana making a decisive close above this resistance.
To sum up, Solana price is on the verge of a crash to $145 after a double-top pattern emerged on the four-hour chart. As sell-side pressure surges, this crash may happen soon. For a more detailed forecast on how Solana will perform between 2030 and 2050, visit here.
