Solana Faces Key Resistance and Potential Major Correction
- Solana (SOL) recently hit a three-week high of $130 before correcting by 6.1% to $122.
- The cryptocurrency broke below its macro support at $120, reaching an eight-month low of $116 in mid-December.
- Analysts suggest that Solana’s chart shows a potential Head and Shoulders pattern with a neckline around the $105 area, indicating possible further declines.
- If SOL loses the $105 support, prices could fall to the $75–$51 range, potentially lasting until mid-2026.
- A double top formation has also been identified, with risks of price retracing towards the $60 mark if current support fails.
Solana is facing significant resistance levels after recent price fluctuations and technical patterns suggesting bearish trends on higher timeframes. The potential breakdown from these formations could lead to substantial price declines over an extended period if key supports are breached.
Despite attempts to break local resistance levels, Solana’s inability to maintain momentum above critical thresholds signals caution for investors as it navigates challenging market conditions.Source)
