Solana (SOL) price is witnessing the formation of a potential bearish outcome, which could cause a significant drawdown.
The altcoin is not receiving much support from its investors, which could exacerbate the current downtrend.
Solana Continues to Lose Value
Solana’s price seemed to be doing well for itself, marking two new year-to-date highs in the past month. However, considering the value of SOL compared to what it once was, it appears that the altcoin is undervalued.
Despite the high daily revenue of over $1.20 million, Solana has not been able to note a resurgence in the overall value according to the P/S Ratio. As a result, Solana’s price could witness some bearishness, given it already seems to be moving against the market trend.
Solana P/S Ratio. Source: TokenTerminal
The increasing pessimism among SOL investors further substantiates the lack of optimism. This is notable from the downtick observed in the weighted sentiment. This metric registers a fall below the zero line, suggesting that bearishness dominates investors.
Read More: 13 Best Solana Meme Coins to Watch in 2024
Solana Investor Sentiment. Source: Santiment
SOL Price Prediction: Bearish Reversal
Solana’s price, trading at $174 at the time of writing, is close to falling through the support of $172, which could result in the altcoin validating the double top formation.
The double-top pattern is a bearish technical analysis formation. It exhibits two consecutive peaks at similar price levels separated by a trough. It suggests a potential trend reversal, indicating that an asset’s price may decline after failing to break through resistance at the previous peak, often leading to downward movement.
At the moment, the target for SOL is set at $142 according to the pattern, representing a 17.27% drawdown from the current levels.
Read More: Solana (SOL) Price Prediction 2024/2025/2030
SOL Price Chart. Source: TradingView
However, if the support of $172 remains unbroken, Solana’s price could invalidate the bearish pattern by bouncing back toward $190.
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