Solana's Bearish Patterns Signal Potential Decline to $60
Solana (SOL) is facing a significant downward trend, with technical indicators pointing to a potential drop to $60. The cryptocurrency's recent 2.5% decline to $70 marks a continuation of its correction from a local high of $76.
A double-top pattern has emerged on Solana's four-hour chart, indicating weakening momentum. This pattern forms when the price fails twice to break above a resistance level, in this case, the $74-$75 range. The first peak occurred on June 15, and the second followed shortly after, with buyers unable to push the price higher.
If Solana breaks below the key neckline at $68, it could trigger a deeper decline to the $60-$61 range. This target aligns with previous support levels and is calculated based on the distance between the $75 resistance and the $68 neckline. Additionally, Solana is trading below its 20-period and 50-period exponential moving averages, with the 200-period EMA near $74 acting as resistance.
Crypto analyst Ali Martinez has noted a "near-term cooling signal" after Solana approached resistance levels at $74.85 and $75. Martinez set a target of around $68, which has now been reached, reinforcing the bearish outlook.