After a massive 18% rally over the past 30 days, Solana (SOL) price is now at risk of a deeper correction that could erase most of its gains. The cryptocurrency is currently on the verge of falling below the critical $150 support level.

Solana Faces Crash as Bearish Signal Emerges

Currently, Solana is priced at $154.16, a small drop of 0.21% over the past 24 hours. Historically, similar movements in the price of SOL have tended to result in larger declines.

In August, when SOL reached the $153 mark, its value quickly fell by 15% to $129.35. A similar situation occurred in September, with a 12% drop, and in October, a similar situation occurred, with a 10% drop in comparable conditions.

If this pattern persists, Solana could face another double-digit decline. The Bollinger Bands (BB), which track volatility, support this outlook. While the price of SOL remains above the middle range, it is not in an uptrend. Therefore, if the coin falls below the middle range, the expected correction could materialize.

Another indicator that reinforces this bearish outlook is the Chaikin Money Flow (CMF), which measures the volume-weighted average of accumulation and distribution. Higher CMF readings indicate stronger accumulation, while lower readings indicate increasing distribution.

On the daily chart, CMF has fallen below the zero signal line, indicating that Solana is facing greater selling pressure. If the current trend continues, this will further support the prediction that SOL price may see a double-digit drop.

SOL Price Prediction: Next step is a 10% retracement

As mentioned earlier, Solana’s price could fall below the critical psychological support level of $150. Given the current market conditions, it might be difficult for bulls to defend this area, which could result in another drop in price.

If this scenario plays out, SOL could drop 10% to $136.07, mirroring price action seen between October 1 and 3. In a more pessimistic scenario, if selling pressure intensifies, Solana could fall further, with its price also dropping to $125.02.

On the contrary, if SOL can hold the $150 support, a rebound could be imminent. In this case, Solana could rise to $173, a level it has not reached since July.