Solana Price Tests a 20% Drop Setup as a 2 Million SOL Swing Hits Exchanges
Solana's price is nearing a 20% drop as a 2 million SOL swing onto exchanges coincides with a bearish head and shoulders pattern.Summary
Solana (SOL) is currently trading at $79.90, hovering above a critical support level that could trigger a nearly 20% decline. Technical analysis reveals a head and shoulders pattern on the daily chart, with the neckline approaching $75.62. This bearish setup is amplified by a significant shift in on-chain data: a swing of over 2 million SOL onto exchanges in under a week, reversing a prior accumulation trend. This increased selling pressure coincides with the formation of the pattern's right shoulder. Derivatives markets also show a bearish sentiment, with negative funding rates for Solana perpetual contracts indicating short positions are paying longs. While open interest has increased, it hasn't reached levels that would suggest an imminent short squeeze. If Solana breaks below the neckline around $75.07, it would confirm the head and shoulders pattern, activating a measured move targeting $62.08. Conversely, reclaiming $83.11 would invalidate the right shoulder and weaken the bearish outlook.
(Source：BeInCrypto)