Solana (SOL) dropped by over 2.5% on Tuesday, hitting $70 while extending its correction from the local high of around $76. Now, several technical setups suggest a further correction in the coming days.
SOL Double Top Puts $60 Back In Play
Solana is showing a clear double-top pattern on the four-hour chart, a bearish setup that forms when price fails twice to break above the same resistance zone.
The first top formed near $75 on June 15, after SOL bounced strongly from its June low near $60. The second top appeared near the same $74–$75 area a few days later, but buyers again failed to push the price above resistance.
A double top usually signals that buyers are losing control. In SOL’s case, the key neckline sits near $68. A decisive four-hour close below that level would confirm the pattern and open the door to a deeper decline.
The measured target sits near $60–$61, based on the distance between the $75 resistance area and the $68 neckline. That zone also matches a major support level from the previous selloff, making it the next obvious downside target.
Momentum also looks weak. SOL is trading below its 20-period and 50-period exponential moving averages, while the 200-period EMA near $74 is acting as overhead resistance.
The relative strength index, or RSI, is near 39, showing fading buyer strength without yet being deeply oversold.
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See all Solana forecastsBear Flag Breakdown Points To Same Target
The bearish case becomes stronger because SOL is also breaking down from a bear flag.
A bear flag forms when the price rebounds inside a rising channel after a sharp decline. It often acts as a pause before the previous downtrend continues.
SOL’s flag started after its steep drop from the $86–$87 area to nearly $60 in early June. The token then recovered inside an upward-sloping channel, but that bounce now appears to be losing steam.
SOL has slipped toward the lower boundary of the flag near $70–$71. A confirmed breakdown below that trendline would suggest the earlier selloff is resuming.
The bear flag’s measured target also lands near $60.70, nearly the same level projected by the double-top setup. When two separate bearish patterns point to the same downside zone, traders usually treat that level as more important.
A move back above $74–$76 would weaken the bearish setup. Until then, SOL’s chart structure favors a retest of the $60 support zone.
Meanwhile, tech stocks have come under pressure after a sharp SpaceX-led selloff, while concerns about heavy AI spending have hit major US megacaps.
At the same time, yen carry trade risks are back in focus as USD/JPY trades near multi-decade highs. A sudden yen rebound could force traders to cut leveraged risk positions, pressuring high-beta assets like Solana.
