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The Solana price plunged 8% in the past 24 hours to trade at $127.72 as of 11:27 p.m. EST on trading volume that dropped 98% to $4.2 billion.
This drop in the SOL price comes as the capitalization for the crypto space decreased almost 6% in the last 24 hours to $2.8 trillion.
Solana Price On A Bearish Breakdown Following a Double-Top Formation
Looking at the SOL price daily chart, a classic double-top pattern is evident, which signals a potential trend reversal from bullish to bearish.
This formation occurred at a peak of around $270, followed by a second high near the same level, indicating strong resistance.
The neckline of this pattern, marked in the purple zone around $180, was a critical support level. However, once this support was broken, the Solana price experienced a rapid decline, confirming the bearish reversal.
The price of Solana is now trading in a significant Fair Value Gap (FVG) support zone in the $120 – $143 range, where buyers are attempting to stabilize the downtrend, according to data from GeckoTerminal.
Meanwhile, the 50-day Simple Moving Average (SMA) is currently at $188.89, well above the current price of SOL, indicating that the short-term trend is bearish. The 200-day SMA at $184.10 reinforces the longer-term bearish momentum.
The Relative Strength Index (RSI) is at 35.70, close to the oversold threshold of 30. This indicates that SOL is nearing oversold conditions, meaning a short-term bounce could be possible, but the overall trend remains bearish unless the RSI moves back above 50.
SOL Price Prediction
Given the breakdown from the double-top pattern and the strong bearish momentum, the most likely scenario is continued downside unless a strong reversal signal appears.
If the Solana price fails to hold above the $120 support, it could drop further toward $100, a major psychological and historical support level.
A prolonged breakdown could extend losses towards $80 – $90, which would represent a full retracement of the previous rally.
On the upside, if buyers defend the $120 – $140 support zone, the price of SOL could see a relief bounce back towards $160 – $180, where the neckline of the double-top and the 50-day SMA would act as strong resistance.
Meanwhile, investors are buying a new Solana meme coin called Solaxy (SOLX), which 99Bitcoins, a popular crypto channel on YouTube with over 725K subscribers, says might soar 10x after launch.
Solaxy Presale Charges Towards $26 Million – Best Crypto To Buy Now?
Solana is best known for its high-speed and low-cost transactions, which has led to a massive meme coin frenzy over the past few years.
Due to this traction, Solana has often experienced network outages and transaction failures, the latest being during the TRUMP and MELANIA meme coin launches in January. These issues are a major headache for DeFi users, NFT enthusiasts, and meme coin traders.
The Solaxy crypto project is a layer-2 scaling solution developed for the Solana blockchain. It aims to enhance decentralized applications (dApps), reduce transaction speeds, slash network costs, and improve scalability on Solana. The SOLX token serves as the core of the ecosystem.
🚨 Solaxy is now live in Upcoming Tokens! 🚨@SOLAXYTOKEN gives holders an opportunity to join the first-ever Solana Layer 2 blockchain.
Solaxy is set to enhance blockchain innovation through limiting congestion, reducing failed transactions, and improving scalability on SOL.… pic.twitter.com/satNF6zFNF
— Best Wallet (@BestWalletHQ) December 17, 2024
Investors are buying into this idea, with the project’s total presale raise already standing at over $25.6 million.
Moreover, once launched, Solaxy will provide a platform where developers can build decentralized applications or launch new tokens without compromising (and possibly even improving) Solana’s layer-1 capabilities.
Solaxy also offers holders who stake the project’s SOLX token a huge annual yield of 159%.
Investors interested in participating in the presale can visit the official Solaxy website to buy SOLX tokens for $0.001658 each using BNB, ETH, USDT, or a bank card. With a presale price hike scheduled to take place in less than 9 hours, investors will want to act quickly to lock in the best rate.
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