Solana (SOL) Faces Key Resistance: Double-Top Pattern Hints at Correction

Solana (SOL) may be flashing a bearish signal as its price action begins to resemble a classic double-top formation, a pattern often associated with trend reversals. Currently trading near $148, SOL is struggling to break through the critical resistance zone between $150 and $152—levels that mark its previous local high.

This second failure to reclaim the resistance area raises concerns about a potential short-term trend reversal. Contributing to the bearish outlook is the presence of technical barriers like the 100-day EMA and the still-distant 200-day EMA, which could cap upward momentum. After a strong rally from April lows around $115, SOL's upward movement appears to be stalling.

Adding to the caution, the Relative Strength Index (RSI) sits just below 60, suggesting fading bullish momentum without reaching oversold territory. Trading volume is also tapering off, another sign that buying interest may be waning as the price approaches overhead resistance.

If SOL fails to hold above the $140 support level—considered the neckline of the potential double-top—a sharp drop toward the 50-day EMA near $132 becomes increasingly likely. A confirmed breakdown below this neckline could trigger a deeper correction, possibly driving the price down to $120 or even $110.

While the broader crypto market remains relatively stable, Solana appears vulnerable to a near-term pullback. Traders relying on momentum may want to exercise caution. Conservative investors could consider derisking or waiting for a confirmed breakout above $152 before reentering. Close monitoring is advised as SOL teeters at a technical crossroads.