After reaching a high of $187 last week, SOL has dropped to around $152, marking a significant decline. This drop is attributed to a bearish "double-top" pattern—a technical chart formation that often signals a reversal from an uptrend to a downtrend. In SOL's case, the two peaks occurred at approximately $184.5, with a neckline at $159.45. This pattern suggests that investors are hesitant to buy above these levels, indicating potential further declines.
Technical indicators, including the Relative Strength Index (RSI) and moving averages, support this bearish outlook, suggesting a possible target price of $136 if the downtrend persists.
The broader cryptocurrency market's weakness, exemplified by Bitcoin's recent fall, is also contributing to Solana's price pressure. Analysts note that SOL has dropped below key support levels and is underperforming compared to Ethereum.
As of now, Solana is trading at approximately $151.93, reflecting a 3.43% decrease from the previous day.
In summary, unless Solana can break above the $184.5 resistance level, the current technical and market indicators suggest a continued bearish trend.
