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Cryptocurrency market’s recent downturn continues to startle investors. Solana‘s price is witnessing a potential decline that could significantly impact its value. Altcoins have been receiving less support from investors lately, which could exacerbate the current bearish trend. So what’s expected for Solana? We examine this with on-chain data and chart analysis.
Why Is Solana Falling?
Solana’s price seemed to be managing well, marking two new highs in the past month. However, when compared to its previous levels, the value of the SOL price is considered low. During this period, the loss of value in memecoin projects and the decrease in airdrop events are causing a decline in user interest.
Despite a daily revenue exceeding $1.20 million, Solana has not been able to record a revival in its overall value based on the P/S Ratio. As a result, Solana’s price may witness further decline despite the current downturn as it appears to be moving against the market trend.
SOL investors are facing increasing selling pressure, further proving a lack of optimism. This is also evident from the decline in overall sentiment. Data dropping below the zero line indicates a prevailing downward trend among investors.
Solana Chart Analysis
At the time of writing, Solana’s price is trading at $176, close to dropping below the $172 support level, which could confirm a double-top formation for the altcoin project. A double-top formation is a bearish technical analysis pattern.
It exhibits two consecutive peaks at similar price levels separated by a trough. It indicates a potential trend reversal and suggests that the price of an asset could decline after failing to break the resistance of the previous peak, often leading to a downward movement.
Currently, the target for SOL according to the formation could be set at $142, representing a 17.27% drop from current levels. However, if the $172 support level holds, Solana’s price could rise towards the $190 level, invalidating the bearish formation.
