Solana (SOL) is at a crucial technical juncture. As the broader crypto market sees a mild pullback, SOL is trading near $144.48, slightly down after a brief 2% rise on May 5. With its price nearing a key symmetrical triangle apex, Solana now faces a serious question: Can it hold above $143, or will nearly $45 million in long positions be liquidated, driving prices sharply lower?
Symmetrical Triangle Pattern Signals Impending Breakout
On the 4-hour chart, Solana’s price is compressing into a symmetrical triangle, created by two converging trendlines. This pattern typically precedes a decisive breakout, either bullish or bearish. Currently, SOL is testing the lower boundary of this formation at around $145.
The recent downturn pushed the price below the 50-period and 100-period simple moving averages (SMA). This sets the stage for a potential bearish crossover, often interpreted as a sell signal. If confirmed, the crossover could further accelerate selling pressure.
At the same time, the MACD and signal lines are closing in on each other in negative territory, suggesting that momentum is weakening and a directional shift is likely imminent.
Key Levels: Can Solana Defend $143?
Solana’s triangle formation places it in a no-trade zone, where traders await confirmation of a breakout or breakdown. Should SOL push past the triangle’s resistance, the immediate upside target lies at $155, with a broader rally potentially taking the token up to $180.
However, a drop below $143 could unlock downside momentum. In this bearish scenario, the price may decline to retest the 200-period SMA, located at $134, representing a 7% correction from current levels.
Related article: The Ultimate Solana Volume Bot Guide for Crypto Projects
Derivatives Data Reveals Growing Bearish Pressure
Sentiment in the derivatives market appears to be tilting bearish. According to CoinGlass, Solana’s long-to-short ratio has dropped to 0.9335, with short positions accounting for 51.72% of trades in the past four hours. This shift indicates a slight dominance of bearish sentiment among leveraged traders.
More significantly, the SOL liquidation map reveals that a decline to $143.30 could trigger as much as $44.95 million in long liquidations. If this level breaks, it could spark a cascade of forced sell-offs, intensifying downward pressure and creating a potential domino effect throughout the market.
Final Outlook: Solana at a Crossroads
Solana’s price action over the next few hours will be pivotal. A clean break above the triangle’s resistance could reset the bullish trend and re-engage momentum traders. However, if SOL breaks below the support zone at around $143, the floodgates for liquidation could open, pushing the token toward the $134 level.
For now, traders should watch volume spikes, SMA crossovers, and liquidation alerts as key signals to gauge SOL’s next move.
