The triple top pattern that Solana price formed over the weekend may not be as negative as it seems.
Solana (SOL) is showing signs of price volatility this week, raising concerns among some analysts that it could drop sharply.
Solana appears to be the only cryptocurrency in the top 20 to see a decline in price over the past 7 days, down 1.4% to $237, while Bitcoin (BTC) remained almost flat at $93,841 and Ethereum (ETH), Solana’s market leader, rose 12% to $3,488.
Furthermore, Solana’s price action formed a triple top pattern over the weekend, which is a negative sign that the bullish period is over and a trend reversal is imminent. In a post on X, analyst ChartFu (@ChartFuMonkey) highlighted the pattern, noting that Solana’s price appears to be on the verge of dropping to $3.
TRIPLE TOP ON SOLANA = GOING TO $3 pic.twitter.com/8KwvQveIUD
— ChartFu (@ChartFuMonkey) November 23, 2024
Although ChartFu's analysis was premature and FUD-driven, he was right in one part as we will see later.
Will SOL price drop to $3 or rise to $300?
It is worth noting that for the pattern to be considered a triple top, the price must then fall below the two previous lows (also known as “swing lows”) formed between the three peaks in the pattern. Therefore, ChartFu analysis is premature because the price has not fallen enough to consider this pattern a triple top at this time.
As for the part where he was right, we can see it in the chart below, as Solana price has fallen below the swing highs, which means it is indeed forming a triple top pattern. However, the price decline seems to have faded at the $220 levels, which is well above $3.
In fact, technical analysis suggests that SOL, the base currency of Solana, could trade around $300 for most of 2025, as we previously reported at Cryptonews.
Therefore, we can assume that the SOL price decline is now over, as its price has increased by 3.6% in the last 24 hours, and the Relative Strength Index (RSI) reading is 55 and is constantly rising, indicating that investors are repurchasing the coin on a regular basis to help stabilize and increase its price.