Solana $180 price prediction faces risks as bull trap looms

Solana (CRYPTO:SOL) has seen a recent price increase of 9.2%, sparking predictions that it may reach the $180 mark. 

However, caution is advised, as multiple indicators suggest this could be a bull trap, where early optimism entices investors before the price experiences a sharp downturn. 

Over the past week, Solana’s price rose to $143.35, but the Sharpe ratio, which measures risk-adjusted returns, has fallen to -0.72. 

This decline signals that the potential rewards may not outweigh the risks at the current price level. 

A low Sharpe ratio warns investors to be cautious, as cryptocurrencies already carry higher risk compared to traditional assets. 

Further supporting this cautious outlook is the SOL/ETH pair, which has shown a recent decline, indicating that Ethereum (CRYPTO:ETH) is now outperforming Solana. 

Over the last three months, Solana outpaced Ethereum by 63.94%, but the pair’s value has dropped by 6.27% in the past three days. 

A similar trend has been observed in the Solana/Bitcoin pair, raising doubts about the likelihood of Solana reaching $180 soon. 

Solana's failed attempt to break the $150 resistance has kept it trading within the $134 to $150 range. 

Additionally, the Relative Strength Index (RSI), which tracks momentum, has turned downward, signaling weakening bullish momentum. 

This shift suggests that if current trends continue, Solana’s price could decline to $127.92. 

However, if Solana manages to breach the $150 resistance, it could climb toward $161.74. 

Investors should remain cautious as the potential bull trap could lead to losses if the price reverses after its recent rise.

At press time, the Solana (SOL) price was $144.39.