A trading expert is warning that Solana (SOL) could be headed for steep losses, potentially up to 60%, as the decentralized finance (DeFi) asset keeps hitting a wall at $150.
In this case, Ali Martinez pointed out that, based on a key technical pattern, if Solana drops below the critical $125 support level, it might trigger a slide all the way to $60, according to his insight in an X post on March 5.
Martinez explained that since March 2024, Solana has been moving within a right-angled, ascending broadening formation, a setup with a flat support line and a rising resistance trendline. This pattern often hints at growing volatility and the chance of a big drop if support gives way.
He noted that every time Solana hits a new high, it runs into resistance along that ascending trendline, forming the pattern’s upper edge.
So far, the $125 level has held firm as a floor, keeping losses in check. But if that support breaks, Martinez warned, a sharp fall to $60 could be on the horizon. Therefore, if Solana slips below $125, selling pressure might kick into high gear, dragging the asset into bearish territory.
Solana’s price bullish potential
On the flip side, a pseudonymous analyst, Mister Crypto, shared a more upbeat take in an X post on March 4. He argued that Solana is showing strong bullish signs, forming an ascending wedge pattern that could set the stage for a breakout.
His analysis pointed to three clear upward surges, with gains of 63%, 100%, and 110%, respectively. This setup resembles a classic “Three Drives” pattern, often signaling a big upward move.
Right now, SOL is testing the upper edge of that wedge. A break above it could spark a rally to fresh highs.
As it stands, Solana is trying to bounce back after struggling to gain traction following its inclusion in President Donald Trump’s strategic crypto reserve. Like the broader market, Solana took a hit from a widespread capital outflow affecting stocks and crypto.
Still, according to a Finbold report, trading analyst Trader Tardigrade predicted Solana could climb past $500, while the AI platform ChatGPT sees SOL struggling to crack $200 in March.
SOL price analysis
At the time of reporting, SOL was trading at $146.64, up over 7% in 24 hours. The cryptocurrency has also gained 7% over the past week.
Although Solana has seen short-term gains, the overall sentiment remains bearish. Technical indicators present a mixed picture with the 50-day Simple Moving Average (SMA) sits at $202.38, well above the current price, while the 200-day SMA at $187.46 highlights the asset’s struggle to regain momentum.
Meanwhile, the 14-day Relative Strength Index (RSI) of 40.88 suggests the market is nearing oversold territory, potentially hinting at a buying opportunity.
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