Solana Price News: Confirmed Triple Top Could Plunge SOL to $50

Solana (SOL) has gone up by nearly 4% in the past 24 hours after bouncing strongly off the $70 level as trading volumes have risen by nearly 70%.

Bulls seem to be onto something as they have pushed the price of this altcoin to a key resistance at $75.

Breaking past this mark could set the stage for a short squeeze, as the selling pressure has been quite strong at this particular price zone.

ETF Inflows Closed the Week in the Red Zone

Last week nearly $2 million flowed out of Solana-linked exchange-traded funds (ETFs), as investors continue to shun altcoins.

This is consistent with the market’s overall tone, as macroeconomic conditions have worsened.

We have been emphasizing that, from a fundamental standpoint, Solana’s value proposition has weakened recently as network usage indicates that traders’ interest in meme coins has waned.

This is a natural situation in a bear market, but it has an outsized impact on Solana’s ecosystem growth as this blockchain relies heavily on transaction volumes and fees produced by this segment.

In a recent Solana price prediction, we highlighted that on-chain revenue within Solana had dropped to its lowest level since December 2023. This is a strong sell signal as it means that the network’s current use cases have not managed to keep users engaged.

Meanwhile, we saw a spike in weekly active users and transaction volumes recently that could signal an uptick in asset transfers to exchanges.

Transaction volumes rose to a new all-time high last week, as Solana processed 962 million transactions. The last time this metric peaked, the price spent weeks in consolidation mode, trading between $80 and $90.

Confirmed Double Top Could Set the Stage for a Drop to $50

Heading to the daily chart, we can see that SOL has formed an uptrend after bouncing off the $60 level. This trend line support is now the key setup to watch.

As of today, the price action is retesting the $75 resistance. The selling pressure has been quite strong at this price area in the past couple of weeks, which makes it relevant from a technical standpoint.

If we break past this level, bulls could trigger a strong short squeeze that pushes SOL back to $80. This won’t necessarily mean that this bear market is over, as such a move would prompt a retest of a former area of strong support that could now act as resistance.

The Relative Strength Index (RSI) just crossed the signal line and has surged past 50. If it rises above 60, that would also confirm a buy signal that could yield interesting results if SOL manages to break past $80 as well.

In contrast, if the price action rejects a move above $75 once again, that would set in motion a triple top pattern. If the price drops below $67, that would confirm this pattern and could set the stage for a drop to $50, which has been our baseline bearish scenario for SOL for weeks.