Solana Teeters on Edge: A 10%+ Plunge Looms if $160 Support Cracks
Solana’s price hangs by a thread—the $160 support level is now the make-or-break line for bulls. Lose it, and double-digit losses could follow as traders hit the exits.
Why it matters: The ’Ethereum killer’ narrative doesn’t mean much when technicals scream danger. Another crypto darling facing the harsh reality of market gravity—just ask the bagholders of last cycle’s altcoin darlings.
Watch the charts, not the hype. And maybe keep some dry powder for the inevitable ’fire sale’ tweets from crypto influencers when (not if) volatility strikes.
- Solana dipped to $162, near key $160 support; failure here risks a drop to $141.
- Long-to-short ratio falls to 0.85; shorts spike, showing bearish trader sentiment increasing sharply.
- Analyst “Mags” sees a large ascending triangle with a potential target of up to $1,650 long-term.
Solana’s price dipped to $162 on Monday, raising concerns among traders as it nears a critical support level of $160. This comes after the cryptocurrency failed to break past the $184.13 resistance level on May 14. The current level aligns with the 200-day EMA, a key technical marker. A drop below $160 could spark a deeper correction.
The decline appears tied to broader market skepticism, with solana showing early signs of a bearish breakdown. Short positions have surged to a monthly high, reflecting increased trader bets on further losses.
Solana’s long-to-short ratio has fallen to 0.85, the lowest in over a month. This suggests more traders are betting on further downside than upside, a strong indicator of negative market mood. If the support zone fails to hold, the next likely stop is near the May 6 low of $141, which WOULD mean a 12.96% drop from current levels.
Solana Short-Term Trend Faces Pressure
Technical signals support the bearish view. The RSI, now at 52, hovers just above neutral. A MOVE below 50 could accelerate selling. Meanwhile, the MACD indicator is nearing a bearish crossover. If this shift happens, it would confirm another sell signal and reinforce market pessimism.
Despite these signals, a bounce remains possible if Solana finds firm support at $160. In that case, the token might attempt another move toward $184.13, the resistance it failed to surpass last week. A close above that point could begin to reverse the trend in the short term.
But the immediate concern remains the potential for a double-digit crash. If SOL falls below $160 and daily closes confirm the move, bears are expected to take control. The next leg down could erase recent gains and test long-term investor patience.
Long-Term Structure Suggests Bullish Setup
Some analysts, however, are focused on the bigger picture. A chart pattern forming since mid-2022 could offer a different outlook. One analyst, Mags, points to a large ascending triangle visible on the monthly chart. “Sol’s monthly chart is forming a massive ascending triangle pattern,” Mags said, suggesting that the structure indicates growing buying strength with consistent higher lows.
This triangle has been developing since Solana’s crash from its all-time high in 2021. Buyers have returned at stronger levels each time, pressing against the horizontal resistance around $267.80. The price has tested that zone several times but hasn’t managed a breakout.
According to Mags, if Solana clears that resistance, a major rally could follow. The projection on the chart outlines a possible surge taking SOL beyond $650, and even up to $1,650 if momentum holds, he added. That would mark a 918% increase from today’s levels.
Breakout will trigger a massive leg up.” noted the analyst.
While the short-term outlook remains negative and pressure is mounting, the long-term structure still shows signs of strength. Traders are left watching closely: either a breakdown below $160 that could sink prices further or a surprise recovery that leads back toward resistance and maybe beyond.
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