Analyst Warns of Solana (SOL) Price Crash – Here’s His Outlook

Analyst Warns of Solana (SOL) Price Crash – Technical Analysis Paints Bearish Outlook

Crypto analyst Altcoin Jim presents a bearish outlook on Solana (SOL) based on technical analysis. He highlights the formation of lower highs, indicating reduced buying pressure.

Lower Highs and Descending Triangle Pattern

The chart shows a series of lower highs since Solana peaked earlier in 2024. Each rally attempt has been weaker than the previous one, indicating waning buying pressure. The presence of rounded tops in April and August further emphasizes this trend.

These lower highs suggest that sellers are gradually regaining control and pushing prices lower, despite bullish attempts to recover. This pattern is a negative indicator, as it reflects a lack of momentum and increasing selling pressure.

The descending triangle formation on the chart adds to the bearish outlook. The horizontal support level is approximately $130, while the declining trendline connects the lower highs. Descending triangles typically signal a potential breakdown and further downward movement.

Distribution Phase and Potential Price Crash

Altcoin Jim also suggests that Solana may be in a distribution phase, where large investors gradually sell off their holdings. This theory is supported by the rounded tops and lower highs observed on the chart.

Distribution phases often precede sharp declines as selling accelerates once support levels are breached. If the descending triangle pattern plays out, Solana could potentially drop to the $110-$100 range.

Bearish Outlook and Key Support Levels

Altcoin Jim's analysis paints a bearish picture for Solana. The lower highs, descending triangle, and potential distribution phase all point to a bearish outlook. A price crash could occur if key support levels are breached.

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