$SOL has experienced a sharp downturn, falling from its recent high of $187 to around $164, marking a 45% drop this month. This decline reflects broader weakness in the crypto market. A key reason behind this slump is the emergence of a double-top pattern on the 12-hour chart—a well-known bearish indicator that signals a possible reversal. This pattern shows resistance near $184.5 with a neckline support around $159.45. If this neckline fails to hold, technical analysis suggests Solana could fall to $136, a level that also aligns with the 23.6% Fibonacci retracement.
The bearish outlook is reinforced by Solana falling below its 50-period moving average, a technical sign that short-term momentum has shifted downward. The Relative Strength Index (RSI) is dropping, indicating weakening buying power, while the MACD (Moving Average Convergence Divergence) shows a bearish crossover—both confirming downward momentum. Adding to the pressure, Solana failed to breach the 50% Fibonacci retracement level at $195, strengthening the case for near-term resistance.
Volume is higher on red (sell) days, suggesting that traders are more eager to exit positions than enter them. Many are either taking profits or cutting losses. The decline in Bitcoin and Ethereum is also weighing heavily on altcoins like Solana, as they often follow broader market trends. Large wallet holders (whales) may also be offloading positions or simply not buying at these levels, contributing to the weakness.
If Solana breaks below the $159 neckline, the next levels to watch are $145 and then $136. A failure to hold those levels could see SOL test even lower support zones like $120. Any bounce from here would face resistance first at $170, and then again at $184. Long-term investors may see this correction as a buying opportunity due to Solana’s strong fundamentals, but short-term traders need to tread carefully.
To shift the momentum back upward, SOL would need to reclaim $170 with strong buying volume, accompanied by positive signals from RSI and MACD. Until that happens, the bearish trend remains intact. Traders are advised to use stop-losses, reduce position sizes, and wait for confirmed signals before reentering. The neckline at $159 remains critical—if it holds, a short-term rebound is possible; if not, expect further downside.
At present, Solana’s technical market structure has weakened. The inability to push past $184.5, plus the failed rally at $195, signals strong overhead resistance. Market sentiment remains cautious, and it’s clear Solana is “bearish until proven otherwise.” Until momentum indicators reverse and price action confirms a breakout, the path of least resistance continues downward.
