Solana (CRYPTO: $SOL) has formed a bearish chart pattern, indicating that more price declines could be in store for the cryptocurrency.
Specifically, SOL has formed a negative double-top pattern after failing twice to break above resistance at $75 U.S.
Analysts say that weakening network activity and risk-off sentiment among investors is keeping Solana's price down.
• Ripple, The Company Behind XRP, Is Valued At $50 Billion
SOL is trading at $68.40 U.S. early on June 24. That's down from a high of $75 U.S. reached last week.
Reduced activity across the Solana ecosystem has added pressure to the digital asset's price, with decentralized exchange volumes and network fee generation falling.
At the same time, macro conditions remain unfavorable for risk assets such as crypto.
Expectations that the U.S. Federal Reserve will raise interest rates in coming months has strengthened the U.S. dollar and weighed on speculative assets such as Solana.
Charts show that Solana is on the cusp of forming a bearish double-top structure with a peak of $75 U.S. reached on June 16.
A neckline formed around $68 U.S., and SOL's price has now broken below that support level.
The chart pattern implies 12% downside from current levels for Solana, with the price possibly falling all the way to $60 U.S.
Additionally, momentum indicators remain weak for Solana, with its Relative Strength Index (RSI) hovering near 42 and remaining below its trend line.
It all adds up to more downside risk for SOL, say analysts, some of whom are urging investors to wait to buy the digital asset at a more favourable price.