- Solana Price drops 12% in a week, forming a bearish rounding top pattern, signaling potential further declines to $120.
- A break below $159 support could push Solana Price toward $120, continuing the downtrend amid ongoing selling pressure.
- Solana long positions are being liquidated, reinforcing the bearish outlook and increasing the likelihood of a drop to $120.
Solana price is under significant bearish pressure, having dropped 22% from highs of $206 to $159. With a rounding top pattern signaling further declines, a break below this support could send Solana price to $120 in the coming weeks. Liquidations and increased market activity amplify downward momentum.
Solana Price Eyes $120 as Bearish Rounding Top Signals Further Decline
A selling pressure on Solana price has built up gradually in the last week, leading to a market decline of 12%, making a rounding top pattern in the price chart. Since the highs of $206, Solana price has plummeted 22% to a support of $159.
Should the price break beneath this support, another 22% decline can be expected. The Solana price is now 2.45% below this critical level and the probability of additional declines is still present.
Source: Tradingview
Solana Price has failed to rebound as the price continues to drop rapidly, which means that there is no bullish momentum that will help Solana sustain its price beyond its current levels.
Possible rebound is unlikely at this point because the selling pressure has been similar over a few days, there are no gaps to be taken by bulls. Should the $159 support break, Solana Price may simply drop to $120 in the next few weeks.
Solana Price Market Sentiment Points to Bearish Continuation
The long/short ratio for Solana is 1.00, indicating a balanced market, but major exchanges like Binance and OKX show more long positions, reflecting optimism. Recent liquidations have led to sharp losses for long positions, adding downward pressure.
Volume has increased by 39.18% to $19.79 billion, open interest is up 0.61% at $9.31 billion, and options volume has risen by 78.29% to $1.89 million, signaling heightened market activity.
Source: Coinglass
The market may see additional downward pressure as long positions are still being liquidated. The failure to hold above the $159 support would probably put Solana Price back nearer the $120 level. With the way the market is going, this bear pressure may result in more downtrend.
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