Solana Sinks to $163 After Support Break—Next Stop Could Be $152

• Solana forms a bearish double top, triggering strong selling from traders.
• SOL Strategies shifts focus to Solana, selling Bitcoin to raise capital.

Solana (SOL) has experienced a sharp pullback, sending waves through the broader crypto market. The coin dropped below a crucial support level, dragging the overall market into the red. 

At the time of writing, Solana (SOL) has fallen to $163.71, marking a 5.18% drop in the past 24 hours. 

According to crypto analyst Carl Moon, SOL has broken below critical support by nearly $167. This breach confirms a bearish setup driven by a classic double top formation, an established reversal signal in technical analysis.

Moon stated that the double top pattern indicates waning bullish strength and rising selling pressure. If SOL fails to reclaim the $167 level soon, it may head towards $152.76.

This next support zone marks a potential 5.34% drop from current prices and could act as a near-term floor.  A bounce from this level may restore short-term optimism, but failure to hold could push prices lower, possibly toward $130.

Indicator Watch: MACD, RSI, and Bollinger Bands

SOL has been trading below the middle Bollinger Band, which now lies near $172. This level also aligns with the 20-day moving average, further highlighting the recent breakdown. The Bollinger Bands have slightly contracted, pointing to lower volatility but hinting at a potential upcoming move.

The Moving Average Convergence Divergence (MACD) shows a bearish crossover, with the MACD line dropping below the signal line. This movement confirms that downward momentum is building. 

The Relative Strength Index (RSI) currently sits at 46.44, slightly below the neutral zone of 50. While not yet in oversold territory, it suggests that bearish sentiment is gradually gaining ground.

SOL has retraced from a recent high of nearly $180 and now faces immediate resistance at the broken support level.

SOL Strategies Inc. Positions for Growth Amid Price Dip

Meanwhile, SOL Strategies Inc., a Canadian firm focused on the Solana blockchain, has filed a preliminary base shelf prospectus. The filing allows for potential financings of up to USD 1 billion, offering financial flexibility for future expansion. CEO Leah Wald noted that the move positions the company to act swiftly on emerging opportunities within the Solana network.

The firm has shifted its asset strategy by selling all remaining Bitcoin holdings and increasing its SOL position. As of the latest disclosure, SOL Strategies holds 26,478.37 SOL tokens. The company aims to support validator operations and deepen its investment in the ecosystem. 

Other entities, including DeFi Development Corp., are also building Solana positions, reinforcing institutional confidence despite the current price correction.

With SOL ranked as the sixth-largest cryptocurrency, its performance remains crucial for investors tracking blockchain infrastructure developments. Analysts advise closely watching the $152.76 support level, as Solana’s next move could shape broader market sentiment.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.