Market analyst Ali Martinez recently noted on X that a close beneath the pattern’s neckline may cause further decline. This traditional head-and-shoulders pattern commonly signifies a transition from bullish to bearish strength, with three different peaks implying that buying momentum is losing power.
Technical investors project possible downside targets by determining the distance from the neckline to the highest part of the pattern (the head). This measurement, extended from the breakdown level, suggests substantial potential losses that can threaten existing SUI holders.
While that is happening, Solana’s ecosystem is not immune to these challenges either, with SOL falling $178 in the past day. The drop seems to be associated with sustained fears over project security following numerous rug pulls.
