- Solana dipped to $162, near key $160 support; failure here risks a drop to $141.
- Long-to-short ratio falls to 0.85; shorts spike, showing bearish trader sentiment increasing sharply.
- Analyst “Mags” sees a large ascending triangle with a potential target of up to $1,650 long-term.
Solana’s price dipped to $162 on Monday, raising concerns among traders as it nears a critical support level of $160. This comes after the cryptocurrency failed to break past the $184.13 resistance level on May 14. The current level aligns with the 200-day EMA, a key technical marker. A drop below $160 could spark a deeper correction.
The decline appears tied to broader market skepticism, with Solana showing early signs of a bearish breakdown. Short positions have surged to a monthly high, reflecting increased trader bets on further losses.
Solana’s long-to-short ratio has fallen to 0.85, the lowest in over a month. This suggests more traders are betting on further downside than upside, a strong indicator of negative market mood. If the support zone fails to hold, the next likely stop is near the May 6 low of $141, which would mean a 12.96% drop from current levels.
Solana Short-Term Trend Faces Pressure
Technical signals support the bearish view. The RSI, now at 52, hovers just above neutral. A move below 50 could accelerate selling. Meanwhile, the MACD indicator is nearing a bearish crossover. If this shift happens, it would confirm another sell signal and reinforce market pessimism.
Despite these signals, a bounce remains possible if Solana finds firm support at $160. In that case, the token might attempt another move toward $184.13, the resistance it failed to surpass last week. A close above that point could begin to reverse the trend in the short term.
But the immediate concern remains the potential for a double-digit crash. If SOL falls below $160 and daily closes confirm the move, bears are expected to take control. The next leg down could erase recent gains and test long-term investor patience.
Long-Term Structure Suggests Bullish Setup
Some analysts, however, are focused on the bigger picture. A chart pattern forming since mid-2022 could offer a different outlook. One analyst, Mags, points to a large ascending triangle visible on the monthly chart. “Sol’s monthly chart is forming a massive ascending triangle pattern,” Mags said, suggesting that the structure indicates growing buying strength with consistent higher lows.
This triangle has been developing since Solana’s crash from its all-time high in 2021. Buyers have returned at stronger levels each time, pressing against the horizontal resistance around $267.80. The price has tested that zone several times but hasn’t managed a breakout.
According to Mags, if Solana clears that resistance, a major rally could follow. The projection on the chart outlines a possible surge taking SOL beyond $650, and even up to $1,650 if momentum holds, he added. That would mark a 918% increase from today’s levels.
Breakout will trigger a massive leg up.” noted the analyst.
While the short-term outlook remains negative and pressure is mounting, the long-term structure still shows signs of strength. Traders are left watching closely: either a breakdown below $160 that could sink prices further or a surprise recovery that leads back toward resistance and maybe beyond.
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