Despite the crypto’s positive performance throughout the year, Solana has been on a downward slide, with many concerned SOL could be set to fall to $120. The fifth-largest cryptocurrency by market cap has struggled to fend off selling pressure. Therefore, it could be set to tumble even further.
Over the last 24 hours, SOL has fallen almost 2% to its current $145 price point, according to CoinMarketCap. That has taken out almost all of the gains the token enjoyed last month. by July 29th, Solana had reached prices as high as $193.
Source: Bitcoin.com
Also Read: Solana Targets $190 as SOL Looks to Fend off Recent Downturn
Solana Could Be Set to Crash as Traders Prepare for the Worst
Throughout the summer, Solana was a high-potential crypto. The presence of Bitcoin and Ethereum ETFs had the market looking at what asset could be next. SOL emerged as a prime candidate. Yet, since the calendar turned to August, it has all been downhill.
Things may be set to get a lot worse. Some traders are concerned that the Solana price could see an even further drop, plummeting SOL to the $120 level. Indeed, crypto analyst Ali Martinez took to X (formerly Twitter) to discuss that concerning reality.
“Solana could be forming a head and shoulders pattern in the hourly chart,” Martinez said. Moreover, he added the pattern, “suggests that a drop below $141 might trigger a correction that sends SOL to $122.”
Also Read: Solana (SOL) Crash Alert: Will SOL Plunge Below $137?
That would certainly be bad news for Solana, and is not out of the realm of possibility. The trading volume of SOL has plummeted 32% in the last 24 hours. That indicates that participation and activity has dwindled. Therefore, making the chances of a turnaround more sparse.
All eyes are on its ability to stay above $142. The last 48 hours have seen it consolidate between $141 and $148, which places it in a danger zone. Falling below that range would open the possibility to a stark freefall to the $120 level.