Solana (SOL) Under Pressure as Market Sell-Off Deepens
Solana (SOL) is facing renewed downward pressure this week as the broader cryptocurrency market continues to experience a sharp decline. After surging to a peak of $187 last week, SOL has dropped to around $159—signaling growing bearish momentum. As of today, SOL/USD is trading at $164, marking a 45% decline from its highest level this month. Technical indicators suggest that the coin may face further downside in the coming days.
A key factor behind this bearish outlook is the formation of a double-top pattern on the 12-hour chart, with peaks around $184.50 and a neckline at $159.45. This classic reversal pattern typically indicates that investors are reluctant to push the price beyond a certain resistance level, often leading to a sell-off.
Adding to the bearish sentiment, investors appear hesitant to place bids above the double-top resistance at $184.50 and the critical 50% Fibonacci retracement level at $195. Moreover, SOL has dropped below the 50-period moving average, reinforcing the notion that sellers currently have the upper hand. Technical indicators like the Relative Strength Index (RSI) and other oscillators are also trending downward, signaling that the bearish trend is likely to persist.
Based on the chart pattern, the distance from the double-top’s peak to the neckline is approximately 14%. Applying that same percentage to the downside from the neckline suggests a potential target price of $136—just below the 23.6% Fibonacci retracement level.
Traders and investors should watch closely as Solana navigates these key technical levels. A break below the neckline could confirm the double-top formation and accelerate the downward momentum.
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