Solana is facing renewed selling pressure after forming a bearish double-top pattern near the $75 level, raising concerns that the popular altcoin could experience another leg lower in the coming days.
The cryptocurrency has struggled to maintain momentum following its recent rally, while weakening network activity, declining decentralized exchange volumes, and broader crypto market weakness continue to weigh on investor sentiment.
With technical indicators turning bearish and key support levels under pressure, traders are closely watching whether Solana can stabilize or if a move toward $60 is becoming increasingly likely.
Solana Retreats From Recent Highs
According to market data, Solana (SOL) was trading around $69 on June 24 after extending losses from last week’s highs near $75.
The decline comes as the broader cryptocurrency market continues to recover from a wave of liquidations triggered by Bitcoin’s breakdown below major support levels earlier in the week.
As risk appetite weakened across the market, investors became increasingly cautious toward high-volatility assets, including Solana and other major altcoins.
At the same time, macroeconomic conditions remain challenging for speculative investments. Expectations that the Federal Reserve may keep interest rates elevated for longer have strengthened the U.S. dollar and reduced demand for risk assets.
This environment has encouraged investors to shift capital toward yield-generating investments and artificial intelligence-related equities, leaving fewer catalysts for aggressive buying in the crypto sector.
Bearish Double-Top Pattern Raises Warning Signs
From a technical perspective, Solana has formed one of the most closely watched bearish reversal patterns in trading.
The four-hour chart shows a double-top formation with two major peaks near $75, recorded on June 16 and June 22.
Between those peaks, the market established a neckline support level around $68.
Now that Solana has broken below that neckline, the bearish pattern appears to be confirmed.
Technical analysts often calculate downside targets by measuring the height of the double-top formation and projecting it downward from the neckline.
Using this method, Solana’s projected downside target sits near $60.80.
That implies approximately 12% additional downside from current levels if sellers remain in control.
Momentum Indicators Remain Weak
Several technical indicators continue to support the bearish outlook.
Relative Strength Index (RSI)
The RSI currently sits near 42, remaining below the neutral 50 level.
This suggests that bearish momentum still dominates the market.
Importantly, the RSI has not yet reached oversold conditions, meaning there may still be room for additional downside before buyers step in aggressively.
Market Structure
Solana has also fallen below several short-term support zones established during the second half of June.
The pattern of lower highs and lower lows remains intact, reinforcing the broader bearish trend.
Until buyers can reclaim key resistance levels, technical conditions continue to favor sellers.
Liquidation Data Highlights Risk Near $68
Derivatives market data provides another reason for caution.
According to CoinGlass liquidation heatmaps, one of the largest clusters of leveraged positions is concentrated around the $68 level.
This is significant because large concentrations of leverage often create volatility when support levels fail.
If Solana decisively breaks below $68, a wave of long liquidations could be triggered, accelerating selling pressure and potentially driving the price toward the $60 target more quickly.
Additional resistance zones appear between:
- $70
- $71
Meanwhile, liquidation clusters below current prices suggest that further downside could attract additional forced selling from leveraged traders.
Open interest has remained elevated despite falling prices, a pattern that often indicates fresh short positions entering the market.
Network Activity Continues to Slow
Beyond technical indicators, Solana’s on-chain activity has weakened considerably in recent weeks.
Several key metrics have declined, including:
- Decentralized exchange trading volume
- Network fee generation
- Transaction activity
- Ecosystem liquidity
During the recent meme coin boom, Solana benefited from extremely high levels of network usage and trading activity.
However, as speculative interest faded, those metrics have fallen sharply.
Since much of Solana’s valuation has historically been supported by strong user activity and transaction growth, the slowdown has reduced one of the network’s key demand drivers.
Capital Outflows Add More Pressure
Wallet activity also suggests growing caution among larger investors.
Several large holders and early venture-backed participants have moved tokens to centralized exchanges in recent weeks.
Such transfers often increase available market supply and can create additional selling pressure.
At the same time, capital leaving underperforming ecosystem projects has not been widely recycled into other Solana-based assets.
Instead, much of the liquidity appears to be leaving the ecosystem altogether.
This trend further reduces buying support across the network.
Not Everyone Is Bearish
Despite the negative outlook, some traders continue to see potential for a recovery.
Crypto analyst Satoshi Owl recently noted that Solana’s price action has been compressing within a four-hour triangle pattern.
According to the analyst, higher lows continue to form while selling momentum appears to be weakening.
Under this scenario, a breakout above the current consolidation range could send Solana back toward the mid-$70 region and invalidate the bearish setup.
However, that recovery would require buyers to reclaim several important resistance levels first.
Key Levels to Watch
Support Levels
- $68
- $60.80
- $60
Resistance Levels
- $70
- $71
- $72
- $75
A sustained move back above the $72-$75 range would weaken the bearish double-top thesis.
Failure to reclaim those levels, however, leaves the downside target near $60 firmly in play.
The Bottom Line
Solana’s recent price action has placed the cryptocurrency at a critical technical crossroads.
The formation of a bearish double-top pattern near $75, combined with weakening network activity, declining ecosystem liquidity, and broader market uncertainty, has increased the likelihood of further downside.
Technical indicators suggest sellers remain in control, while liquidation data highlights the risk of accelerated losses if key support levels fail.
For now, the $68 support zone remains the most important level to watch. If bulls can regain control and reclaim higher resistance levels, a recovery remains possible. But if the breakdown continues, analysts believe Solana could be on a path toward the $60 region in the weeks ahead.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency investments are highly volatile and involve risk. Always conduct your own research before making investment decisions.
