Crypto: Sol’s Path Of Least Resistance Tilts Toward $50 But Onchain Data...

SOL price looks bearish on multiple chart timeframes, leading analysts to put a short-term target on $50. Will the “extreme” state of SOL’s MVRV indicator prevent another price crash?

Solana’s SOL (SOL) continues to be battered by bearish headwinds since collapsing to $67 on Feb. 6. SOL is more than 72% below its all-time high of $295, and several metrics suggest that the downside may be far from over.

Solana’s bearish technical patterns lean toward a $50 price target.

The MVRV bands suggest SOL may have bottomed, but the data point is an outlier.

The spot Solana ETFs continue to attract investor interest, providing hope for a short-term price recovery.

Solana’s latest drawdown caused its price to lose key support levels, confirming a head-and-shoulders (H&S) pattern on the weekly chart.

Crypto analyst Bitcoinsensus shared a chart showing SOL validating a H&S pattern, hinting at more downside ahead.

The two-day chart shows that the price had broken below the H&S’s neckline at $120 on Jan. 30. The measured target of the H&S pattern, calculated by adding the head’s height from the breakdown point, is $57, representing a 30% drop from the current level.

Zooming in, the price was retesting support provided by the lower boundary of a bear flag at $80 on the daily chart, as shown in the chart below.

Related: Zora debuts attention markets on Solana, betting on social trends

Source: CoinTelegraph