Solana (SOL) Daily Chart Suggests a Potential Bearish Double-Top Pattern

The last time SOL reached to $160 level it saw a massive sell-off and the price fell to the $140 level. SOL’s open interest has dropped by 7% in the last 24 hours

Solana (CRYPTO: SOL) encountered significant selling pressure on Wednesday, breaking its two days of consolidation.

The world's seventh-largest cryptocurrency experienced a setback as it shifted away from the crucial level of $160.

Solana (SOL) Price Action and Technical Analysis

The breakdown from consolidation shifted the sentiment for SOL to bearish.

Moreover, the SOL daily chart showcased the formation of a bearish double-top price action pattern, which awaited confirmation.

Based on the historical price momentum, the last time SOL approached the $160 level, it encountered massive selling pressure and fell to the $140 level.

However, this time, there was a high possibility that SOL could fall again to the $140 level.

Currently, SOL's open interest also supported this bearishness as it dropped by 7% in the last 24 hours, indicating reduced interest from investors, according to CoinGlass data.

Meanwhile, the technical indicator, 200 Exponential Moving Average (EMA), signaled SOL was still in an uptrend as it moved above it.

SOL Whale On Buying Spree

However, investors were still looking to accumulate tokens in this range.

Recently, an on-chain analytic firm, lookonchain, made a post on X (Previously Twitter) stating that Whale had purchased a significant 28,717 SOL, valued at $4.56 million, in this consolidation zone from Binance.

A whale bought 28,717 $SOL($4.56M) from #Binance today and staked it.https://t.co/X26MdvAuKh pic.twitter.com/iavZfNs9mb

Moreover, this was not an ordinary purchase as whales went on to stake all those tokens, indicating their aim for long-term holding.

Current Price Performance

At press time, SOL was trading near $153 and had experienced a price decline of over 2.5% in the last 24 hours.

Meanwhile, its trading volume remained stable during the same period, showing an increase of 1.2%, according to coinmarketcap data.

Other major cryptocurrencies, including Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), BNB (CRYPTO: BNB), and Dogecoin (CRYPTO: DOGE), also encountered selling pressure.

In the last 24 hours, these tokens had seen a price drop of over 3.2%, 5.3%, 2.5%, and 3.5%, respectively.