Even though it recently fell from its 2024 highs, Solana is still one of the best-performing cryptocurrencies. It is selling well above its 2022 lows. Some traders are hopeful that the coin will go above $260 and set new all-time highs in the next few months. But sellers are very against Solana, just like they are against other significant cryptocurrencies like Bitcoin and Ethereum.
The daily chart shows that Solana is moving sideways, which could mean that it is in an accumulation phase since the overall direction is still going up. On shorter time frames, though, worries are starting to show up. A trader on X has noticed a notable candlestick pattern: a head-and-shoulders shape on the hourly chart.
Solana Faces Major Resistance
This pattern suggests that X might be weakening. This trend showed up when Solana stayed in the bearish range from July 28 to August 5.On the daily chart, Solana faces major resistance at $162. On the hourly chart, it faces resistance around $150.
Support is at $142. Moving sideways within this band has also made a bear flag, which is another sign that prices are going down. If Solana can’t stay above $142, the price could drop quickly, and sellers might aim for the $120 range, which is where the lows were in June and July.
Besides technical analysis, outside forces are also making SOL momentum weaken. The SOL Foundation found and quietly fixed a major security hole last week, which raised worries about the decentralization and openness of the platform.
One more problem with SOL is that a lot of transactions have failed. Jupiter, a major decentralized exchange on SOL, reports that only about 35% of transactions go through successfully. This hurts the platform’s image for having low fees and being able to grow quickly.
As Solana deals with these problems, the next few sessions will be very important in figuring out whether it can keep going up or collapse towards $120.
